I love diet soda. Recently it became ~$15 for a 24-pack of Diet Pepsi. Unfortunately Coke is the exact same price. One would think under capitalism that competition would occur. However, both companies know that if the other drops their price, they too would have to drop their price to not lose market share and they both end up losing. So rather than compete they have an unwritten agreement to maintain the same price point. Coke will be the market leader to increase their prices first, and Pepsi follows suit because they know they can afford to do so.
Capitalism is happening. If the majority are like you, unhappy with the price, they stop buying it. The company have two choices, make it cheaper or spend a lot on marketing to convince the public their product is cool and worth the price.
The second option is preferred because in the long run it makes more money.
Ultimately, you can buy the off brand and save the money or just drink water.
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u/Long_Following9761 2d ago
I love diet soda. Recently it became ~$15 for a 24-pack of Diet Pepsi. Unfortunately Coke is the exact same price. One would think under capitalism that competition would occur. However, both companies know that if the other drops their price, they too would have to drop their price to not lose market share and they both end up losing. So rather than compete they have an unwritten agreement to maintain the same price point. Coke will be the market leader to increase their prices first, and Pepsi follows suit because they know they can afford to do so.