Tuesday, December 30, 2014

Demand

On my last day in Winnipeg, as my friends were drifting back to work, I went to eat some Taco Time. If you are from Western Canada you have probably had this once or twice. However, if you are from Eastern Canada you probably have never heard of this amazing Mexican fast food establishment. One trip to Taco Time and you will never even consider Taco Bell as an option. That being said, the quality of the the quick service Mexican food has little to do with what I’m writing about.

If you have been reading this blog for a while (first off I want to say thank-you) you know I gave up drinking Coca-Cola a year and a half ago. A byproduct of not drinking that evil concoction is I don’t eat a lot of fast food. When I was faced with selecting a beverage to go with my delicious Super Beef Burrito Combo I chose water. Other than a bit of fruit juice in the breakfast timeframe or beer, I almost always get water.

Here’s the thing. It cost me an additional forty cents to get a bottle of water over a Pepsi from the machine. 

My initial thoughts were how could you justify charging me more for water than for pop? Let’s be honest, pop is water with several ingredients added. Pop is water with a whole bunch of labour added to it. Pop uses water as the base and builds on it so there is no way that water should cost more.

Then the businessman in me kicked in. If you are good at pricing then you price based on demand and not on input cost. This means that there is a greater demand for water than fountain pop, otherwise the retailer, in this case Taco Time, would not feel they could charge more for unmodified water than the upgraded and modified model (pop).

All this makes me very happy.

If you can demand more for pure water than for the most useless beverage on the planet then that must mean a lot of people are choosing to not drink pop. It means a lot of people are choosing a healthier option. More people are being a bit more conscious about what they are putting in their bodies.

I’m going to be very honest here. If you are eating lunch at Taco Time then your health in not the first item on your mind but if you are not drinking pop then your health is not the last thought on your mind either.

I have read a couple of time in the last six months that beverage companies have been slashing the price of carbonated, sugar laden beverages because demand is weakening. I see this as a good thing. Finally more people, including the author of this piece, are cutting a few of the worst things out of their life.

Don’t get me wrong, if you want to have a can of Coke as a treat once in a long while and can keep it to that, go for it. As for myself, I like it way too much and have come to realize that the only way I can keep my consumption to a healthy level is do not drink any at all.


The demand for pop is going down, this can only mean more people are going to live a healthier life and a healthier life is always a better life.

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