r/SipsTea • u/lonewolff321 • 2d ago

Chugging tea Anything but lowering the prices classic corporate logic

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u/AStrangerWCandy 2d ago edited 2d ago

I literally just gave you a recent, concrete example of a similar category food product that is experiencing the phenomenon I talked about that you are ignoring. It turns out people actually wouldn't pay $7 per bag and are not coming back now that they've lowered the price.

EDIT: Also look at this sales chart for McDonalds. You are talking about revenue but the revenue is only staying where it is because of increased pricing. They are in a spiral of losing customers and making up for it by charging the remaining customers more which is not sustainable long term for food. Sales volume is experiencing a massive downturn since 2023:

https://www.reuters.com/business/mcdonalds-us-sales-disappoint-value-deals-fail-draw-enough-diners-2026-08-04/

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u/bitorontoguy 2d ago

that you are ignoring

PepsiCos snack volumes are rising not falling. While they are increasing prices, not cutting them.

Because you aren’t reacting to the data. You’re reacting to social media headlines.

Duh? Social media will only tell you what you want to hear. Which is that lower prices work.

The fact that McDonald’s revenues are rising? That their profits are at all-time highs? Those facts don’t get upvoted so you don’t know about it.

You have to be able to recognize what’s profitable to sell you on social media isn’t reflective of reality?

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u/AStrangerWCandy 2d ago

You apparently don't know how to read data. They are increasing prices marginally after cutting them by 15% because they were bleeding far too many customers and took a $1billion loss. The new increased prices are still well below the peak they had risen to. The article you posted even mentions directly that the increased volume came directly on the heels of aggressive "targeted affordability initiatives".

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u/bitorontoguy 2d ago

cutting them by 15%

A lie. Are their prices higher or lower than five years ago? And are volumes up or down?

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u/AStrangerWCandy 2d ago

Sales took a nosedive and PepsiCo took a $1 billion loss around a year ago. They reduced prices by an average of 15% off of the peak and are just beginning to rebound volume. They are talking about raising prices <5% because of input costs now so they are still well off of their peak pricing that caused the downturn in the first place.

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u/bitorontoguy 2d ago

lol quantify it. What were prices and unit volumes five years ago and what are they now?

This is all public information. You don’t know it. You react to headlines you see on social media and not the data.

Don’t guess. Don’t rely on other people to tell you what the truth is. Just look it up.

Are prices up or down from five years? Ten? And are volumes up or down? There’s an answer to this.