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Comment by jakubp | Hacker News Reader

I'll give a practical example. If you got to a gas station near me, you can get a CR2032 battery for say 2 USD. If you got to a certain home decor/equipment store a mile away, you'll get 4 of these batteries for 1 USD. That's what, 8x more expensive for a relatively common product? Gas stations and convenience stores in my country routinely charge 500-1000% more for common products because, and here's the gist of it I'm sure for most store/chain owners, "why not"?

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You are paying extra for the service the gas station is providing which is that they shipped and stored the batteries in a location close to your home. The gas station is probably also open longer than the big box store.

The gas station also probably pays more per square foot of real estate.

The store where the price is low also needs it shipped and stored, and is also close to my home. So that's definitely not a reason.

Did you mean "convenience makes the price higher"? No quarrel there! The issue is how much higher. 8x more expensive (as an example) is in the "ripping me off" territory, if you ask me :)

Real estate prices for a big box store and small convenience store are totally different.

Wait until you find out the cost of producing most non-alcoholic beverages...

A bit more than water but not much, may I guess? Transporting and storage and the waiter/ress is the real cost?

The subsidies from high-fructose corn syrup etc, may even make the production of fizzy drinks less than water.

Fountain drinks are produced on-site using tap water and concentrated syrup. Transport and shipping cost is low since the syrup doesn't take up much space. A typical fast food soda (any size) costs about 15-20 cents for the cup and soda, and is sold for $1 on the low end. Larger chains can optimize the price down to 5-10 cents on the most popular sodas. Labor costs are insignificant if the customer self-serves from the fountain.

Ok, thanks. I previously assume the drinks were in coke cans, but now when you mention cups instead, and self serving, it's more obvious to me how the drinks can be that inexpensive.

It’s even in the name. You’re paying for ... convenience. That’s why things are more expensive per unit.

A) they are closer to where you live. And B) in smaller unit packs. Maybe you only need one battery, but to get them cheaper (per unit) you need to buy an 8-pack.

If a one pack is $2, but an 8-pack is $0.50/ per battery. If you only need one, you’re still better off paying four times as much ($2 < $4).

It’s all about the convenience...

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