
Ask HN: What's up with Red Bull's pricing strategy? - mannicken
Foreword: hopefully this relates to HN as it is business/price-setting related, which could be related to startups.<p>Well, a 4-pack of 250 ml Red Bull cans costs around five dollars (at Walmart). That is an average price of $1.25/can.<p>A 24-pack of 250 ml Red Bull cans costs around 42 dollars (http://www.amazon.com/Red-Bull-Energy-Drink-Sugarfree/dp/B000MTM0WK). That means 42/24 = $1.75/can.<p>At Walmart also, a 12 pack of 250 ml Red Bull cans costs 20 bucks. That is 20/12=1.66 per 250 ml can.<p>So, 1.25 (4-pack) &#60; 1.66(12-pack) &#60;1.75(24-pack).<p>The question is: WHY?<p>Shouldn't a properly run pricing strategy <i>encourage</i> customers to buy <i>more</i>, not discourage them? What's going on exactly?
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lacker
1\. You can't compare Walmart to Amazon and expect the same prices.

2\. Although larger quantities are usually cheaper by the unit, sometimes that
is not true. Maybe the store is running low on inventory for the larger one,
or high for the smaller one. Maybe they cut the price on the smaller one to
act as a loss leader - I know drinks are often in this category.

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teej
Point 1 is incredibly important. Walmart achieves low prices in part by
putting pricing pressure on their suppliers. I have never seen a 4-pack of Red
Bull for $5 anywhere, it's always $6 or $7. My guess is that Walmart is
setting that price point, not Red Bull.

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jgrahamc
Perhaps Red Bull takes into account some discrete pricing jumps that people
might have. For example, suppose a single can of Red Bull costs $1.50 (you
haven't given that price, but I think it's important) and I go in and see that
4 cans cost $5. So I see that it's a good deal and it's just a five dollar
bill.

But when I get to 24 packs I'm in a whole different league and not thinking of
an individual note. Now we're talking serious money.

Or perhaps Red Bull buyers can't do arithmetic.

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noodle
typical single pricing for a can is $2. also, typical pricing for a 4 pack is
$6-8. walmart is specifically pricing them lower than "market", if what the OP
is saying is true.

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gmonk
The original Thai version of Red Bull can still be found for much cheaper at
your local asian grocery store. They will typically carry several off-brand
versions as well for even less.

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chanux
In local stores (in my country) a Redbull costs me around $2.5. Looks like you
guys are very lucky :)

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davidw
If you drink a lot of that junk, you need something like this:

<http://journal.dedasys.com/2008/10/17/programmer-fuel>

I think I paid 2 euro for that whole bottle. Wow was I wired that day...

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ErrantX
and I bet productivity plummeted :P

Top Tip - stimulants like that (and I include coffee there) dont work twell at
all: try orange juice instead, it will work much better and for longer. Follow
it up with plenty of water (even minor dehydration makes you tired).

One glass of OJ every half hr plus lots of water will keep you awake longer
than a can of Red Bull etc. :)

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pasbesoin
Try mixing half orange juice and half water. Very refreshing, and it doesn't
impose as much of a "sugar rush" and crash.

I used to drink this after heavy exercise -- I was never into sports drinks
(amongst other things, the food coloring in them upsets my stomach). I found
it very effective; it also stopped my stomach from cramping at the sudden
introduction of a large quantity of water.

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progLiker
It isn't legal were I live! :-)

