I recently visited the local Costco to stock up on some Thanksgiving Day supplies and two of my purchases were a 28 oz bag of Frito-Lay Ruffles and a 30oz bag of Frito-Lay Doritos. I have purchased these products from Costco before, but I never noticed the retail price printed on these bags, $7.59 for Ruffles and $7.69 for Doritos.
I imagine these huge bags of chips are made specifically for Costco and I don’t really understand a need for a printed retail price on the bag, particularly when Costco charges $4.99 for these chips, everyday. I think it is interesting that Costco charges a price that is approximately 35% lower than the retail price printed on the bag.
I am certain Frito-Lay is not loosing money on each bag of chips they sell to Costco and I have to assume Frito-Lay is making some sort of profit. Since Frito-Lay is making a profit on 28oz and 30oz bags of chips they sell to Costco, what kind of profit are they making on the smaller bags of chips they sell to other stores, particularly convenience stores?
It’s safe to say that you can expect to pay full retail price for any bag of Frito-Lay chips you purchase at a convenience store. If you compare the price per ounce of Costco purchased and convenience store purchased chips, the minimum profit over Costco numbers are huge. These numbers range from a 67% increase for an 18oz bag of Doritos to 196% increase for a 1.875oz bag of Ruffles.
Ruffles
28oz at Costco = 4.99 = .18 per oz
14oz at conv store = 4.99 = .36 per oz = 100% minimum profit increase
10.5oz at conv store = 3.99 = .38 per oz = 113% minimum profit increase
2.75oz at conv store = 1.29 = .47 per oz = 177% minimum profit increase
1.875oz at conv store = .99 = .53 per oz = 196% minimum profit increase
Doritos
30oz at Costco = 4.99 = .17 per oz
18oz at conv store = 4.99 = .28 per oz = 67% minimum profit increase
12.5oz at conv store = 3.99 = .32 per oz = 92% minimum profit increase
7oz at conv store = 2.29 = .33 per oz = 97% minimum profit increase
3.625oz at conv store = 1.29 = .36 per oz = 114% minimum profit increase
2.125oz at conv store = .99 = .47 per oz = 181% minimum profit increase
It is fairly obvious to see that Frito-Lay is making very large profits from convenience store sales, smaller the package, greater the profit.
Sunday, November 30, 2008
Sunday, November 23, 2008
Chevy Volt Electronic Vehicle
This blog entry originates from a 2008 Los Angeles Auto Show link I found on the LA Times homepage, 2008 Los Angeles Auto Show.
As I clicked on the link, I wondered what type of interesting articles I would find on near future fuel efficient vehicles. I spotted a link to some information on electronic vehicles and was pleased to read that many automobile manufacturers have already made a commitment to producing electric vehicles again. Consumers can expect to see these vehicles on the road and in dealerships by 2010, L.A. Auto Show - Carmakers charge ahead with electrics
I have to wonder if the electronic vehicle commitment will remain the same for all these manufacturers. More than likely these commitments were made when oil and gas prices started to dramatically increase a couple years ago and are back to reasonable levels now. The advanced development and marketing teams for all vehicle manufacturers must be pulling their hair out. My opinion is they should stay the course and push the development and marketing of these vehicles, we all know oil and gas prices will increase again.
One of the vehicles mentioned in the article is the “hotly anticipated” Chevrolet Volt and it’s $40,000 price tag. My immediate thought when reading $40,000 for an electric car, GM is not real serious about this market and they are going to get squashed by the competition again. The eventual winner in the electric vehicle market is going to be a manufacturer who incorporates great quality, affordability to the masses, basic needs options only, and customization options like Mimi Cooper and Scion.
My curiosity was peaked and I needed to take a look at this new “hotly anticipated” Chevrolet Volt, regardless of it’s $40,000 price tag. I took my search to Google and picked one of the first few hits, CNN Money - Chevy Volt.
Toyota Prius Production
As I clicked on the link, I wondered what type of interesting articles I would find on near future fuel efficient vehicles. I spotted a link to some information on electronic vehicles and was pleased to read that many automobile manufacturers have already made a commitment to producing electric vehicles again. Consumers can expect to see these vehicles on the road and in dealerships by 2010, L.A. Auto Show - Carmakers charge ahead with electrics
I have to wonder if the electronic vehicle commitment will remain the same for all these manufacturers. More than likely these commitments were made when oil and gas prices started to dramatically increase a couple years ago and are back to reasonable levels now. The advanced development and marketing teams for all vehicle manufacturers must be pulling their hair out. My opinion is they should stay the course and push the development and marketing of these vehicles, we all know oil and gas prices will increase again.
One of the vehicles mentioned in the article is the “hotly anticipated” Chevrolet Volt and it’s $40,000 price tag. My immediate thought when reading $40,000 for an electric car, GM is not real serious about this market and they are going to get squashed by the competition again. The eventual winner in the electric vehicle market is going to be a manufacturer who incorporates great quality, affordability to the masses, basic needs options only, and customization options like Mimi Cooper and Scion.
My curiosity was peaked and I needed to take a look at this new “hotly anticipated” Chevrolet Volt, regardless of it’s $40,000 price tag. I took my search to Google and picked one of the first few hits, CNN Money - Chevy Volt.
The Volt concept vehicle made it’s first appearance at the 2007 Detroit Auto Show and the buzz began, the concept was gorgeous, it resembled a Chrysler 300M on steroids. Who could not love the way this vehicle looked, however it was a concept, a toy model. The GM advance development and marketing teams accomplished what they wanted to accomplish, create a buzz, a big buzz.
Chevy Volt Concept
GM just unveiled their production version of the Volt last September and many of the early fans of this vehicle have abandoned their praise and are asking to be taken off the waiting list. The buzz has been killed and how could this happen?
Chevy Volt Production
The initial buzz was created by the marketing and industrial design teams in their realistic looking fantasy vehicle with no regard to engineering, design, and manufacturing. I am sure this sort of concept vs. actual phenomenon occurs all the time in the automobile industry, but I think there should be some resemblance between concept and actual.
I have to wonder if this Volt concept was actually a concept for some high performance gas guzzling luxury car in the 300M class of vehicles, I suppose it’s possible. GM could have decided to scrap the concept when oil and gas prices were on the rise, but the model was already made. The GM marketing team could have been trying to quickly react to a changing market, hey look at what we are doing and it’s called Volt and it's an electric vehicle.
What ever the true story is, GM missed the mark big time. They went from a Chrysler 300M on steroids resemblance to Toyota Prius resemblance. They could have created a concept that was a little more realistic and manufacturable while maintaining and elegant and futuristic look. Now they have lost some of their early fan club and turned them into a bash club. I am sticking to my earlier thought on this vehicle, GM is not real serious about this market and they are going to get squashed by the competition again.
For the record, I am not a GM basher. I currently own a GM truck and have owned three other GM vehicles in my life.
I have to wonder if this Volt concept was actually a concept for some high performance gas guzzling luxury car in the 300M class of vehicles, I suppose it’s possible. GM could have decided to scrap the concept when oil and gas prices were on the rise, but the model was already made. The GM marketing team could have been trying to quickly react to a changing market, hey look at what we are doing and it’s called Volt and it's an electric vehicle.
What ever the true story is, GM missed the mark big time. They went from a Chrysler 300M on steroids resemblance to Toyota Prius resemblance. They could have created a concept that was a little more realistic and manufacturable while maintaining and elegant and futuristic look. Now they have lost some of their early fan club and turned them into a bash club. I am sticking to my earlier thought on this vehicle, GM is not real serious about this market and they are going to get squashed by the competition again.
For the record, I am not a GM basher. I currently own a GM truck and have owned three other GM vehicles in my life.
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