#1 ·
Can someone give me a logical explanation for why Tang is under a buck in Austria, but here it's like $4.00 maybe more?! 😕
Tang GO
Started by fadedpilot2 · · 👁 5 views · 40 replies
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#2 ·
Lower profit margins, fewer excise taxes, and less customs duty
lower wholesale prices, stuff like that...
is this enough, or am I going to need to write a whole damn dissertation? 😬
lower wholesale prices, stuff like that...
is this enough, or am I going to need to write a whole damn dissertation? 😬
#3 ·
😲 😲 Seriously?! People here are actually insane. 🙄 Last summer, even those 1L bottles of Cappy antioxidant juice were priced at over $5.25, and they ended up slashing them to $3.25 because nobody was willing to be that stupid.
Edit: Richard Lewis16, I don't get it—do our local guys have to pay customs and extra taxes just to sell Tang here? 😕 😬 Seems more like a margin issue to me.
Edit: Richard Lewis16, I don't get it—do our local guys have to pay customs and extra taxes just to sell Tang here? 😕 😬 Seems more like a margin issue to me.
#4 ·
you basically just get some water and a few grams of Tang
the product wouldn't even be that bad if it weren't for such a ridiculously low price—because honestly, it isn't worth much more than that anyway
but eventually, all of this is going to come back to haunt the manufacturer...😉☕
the product wouldn't even be that bad if it weren't for such a ridiculously low price—because honestly, it isn't worth much more than that anyway
but eventually, all of this is going to come back to haunt the manufacturer...😉☕
#5 ·
They’ve clearly done some math over here in the States: they figure out how much half a liter of water costs, then just tack on the price of Tang on top of that...
Nice try, though... but honestly, it doesn't look like people are biting. In my local corner store, those things are basically just collecting dust...
Nice try, though... but honestly, it doesn't look like people are biting. In my local corner store, those things are basically just collecting dust...
#6 ·
Richard Lewis16 said:Lower profit margins, fewer excise taxes, and less customs duty
lower wholesale prices, stuff like that...
is this enough, or am I going to need to write a whole damn dissertation? 😬
A whole dissertation, if you please...
Margins and taxes make sense, but customs?! Are you talking about some border crossing in Brooklyn (since that's where the factory is)? 😉
And lower wholesale prices?! That doesn't really track either... I highly doubt there's any middleman standing between Tang and a massive retailer like Walmart.
#7 ·
The price for Tang at Walmart is $3.25
.
And honestly? It’s way too much. When you consider that 200g of Tang—enough to make 2.5L of drink according to the bottle (though you can easily make much more)—only costs about $4.25.
Tang should really be priced closer to what a 0.5L bottle of Coca Cola or Fanta goes for in that category, which is usually around 5-$2.00 🙂
.
And honestly? It’s way too much. When you consider that 200g of Tang—enough to make 2.5L of drink according to the bottle (though you can easily make much more)—only costs about $4.25.
Tang should really be priced closer to what a 0.5L bottle of Coca Cola or Fanta goes for in that category, which is usually around 5-$2.00 🙂
#8 ·
fadedpilot2 said:Can someone give me a logical explanation for why Tang is under a buck in Austria, but here it's like $4.00 maybe more?! 😕
The Tang produced for the Austrian market likely has a lower vitamin content, which accounts for the cheaper price tag.☕
Good grief... just another guerrilla marketing tactic playing out on a forum.😠
#10 ·
well, my answer was pretty much just a general overview
I'm honestly not even sure if there's any kind of customs duty involved for something like this
but it works roughly like this—and I'm being a bit dramatic here, but it applies to almost everything
the base cost of the product is $3.25 during manufacturing
then you tack on the sales tax and the retailer's margin
over in America the sales tax is 22%, while in Austria it’s around 18%—though they might have some specific tax breaks for groceries, I can't say for certain
the margin is set by the seller, and that depends on all sorts of things like location, demand, and whatnot
plus, if you're buying in bulk, you usually get a discount 😉
the government also helps out with export subsidies to make sure our products stay competitive... I'm not positive if that applies to this specific item, but I'd assume it does
it's also entirely possible that the product itself is actually manufactured in another EU country where costs are lower, so for instance, Tang from Poland would be cheaper right out of the gate than the stuff made here, even if they are identical
I'm honestly not even sure if there's any kind of customs duty involved for something like this
but it works roughly like this—and I'm being a bit dramatic here, but it applies to almost everything
the base cost of the product is $3.25 during manufacturing
then you tack on the sales tax and the retailer's margin
over in America the sales tax is 22%, while in Austria it’s around 18%—though they might have some specific tax breaks for groceries, I can't say for certain
the margin is set by the seller, and that depends on all sorts of things like location, demand, and whatnot
plus, if you're buying in bulk, you usually get a discount 😉
the government also helps out with export subsidies to make sure our products stay competitive... I'm not positive if that applies to this specific item, but I'd assume it does
it's also entirely possible that the product itself is actually manufactured in another EU country where costs are lower, so for instance, Tang from Poland would be cheaper right out of the gate than the stuff made here, even if they are identical
#11 ·
Kevin Morris12 said:The price for Tang at Walmart is $3.25
.
And honestly? It’s way too much. When you consider that 200g of Tang—enough to make 2.5L of drink according to the bottle (though you can easily make much more)—only costs about $4.25.
Tang should really be priced closer to what a 0.5L bottle of Coca Cola or Fanta goes for in that category, which is usually around 5-$2.00 🙂
Just a heads-up, Walmart basically has five different price tiers for the exact same item depending on where you pick it up—like, if it's a massive supercenter versus a tiny corner store, or if they've got zero competition in the area and so on. Prices just fluctuate like that. The one I saw was definitely overpriced. $4.00..
#12 ·
fadedpilot2 said:Can someone give me a logical explanation for why Tang is under a buck in Austria, but here it's like $4.00 maybe more?! 😕
In the US, it likely costs even less, assuming they even carry it. You have to realize that pricing is primarily driven by supply and demand; Austria is an entirely different market. If you were the CEO of Atlantic Trade, it would be irresponsible to sell a product for less than your acquisition cost. Beyond that, there are other variables at play. I suspect Austrian consumers might be more punctual with payments, which is a significant factor. Then, of course, there is the retail behavior—it is possible that retailers like Walmart hold much higher margins than their Austrian counterparts. I wouldn't rush to "blame" Atlantic Trade; it is somewhat naive to expect a commercial firm to act with social sensitivity. If they misjudge the market, the financial consequences will hit them directly, so do not worry. However, I am certain there is less monopoly power in the Austrian market, leading to slimmer margins. Here, Walmart effectively dictates prices because they possess the leverage to squeeze many suppliers.
#13 ·
It’s actually quite a wild comparison when you look at Hershey's Snickers—it's almost surreal. I was visiting Munich recently, where a box is roughly $8.25, whereas back home in the States, our standard box sits at about $13.
#14 ·
So, I find myself making the trip over to the shopping malls in Jersey regularly
just because, honestly, you can pick up stuff there for way less than what we’re seeing at the local shops back home... 😬
just because, honestly, you can pick up stuff there for way less than what we’re seeing at the local shops back home... 😬
#15 ·
Kraft Foods is served at the pub for like 10 bucks$4.00... just like Coca-Cola...
Who’s actually crazy enough to go out and buy that Coca-Cola stuff anyway?
I'd much rather just hit up a local bar and drink it in peace...
Who’s actually crazy enough to go out and buy that Coca-Cola stuff anyway?
I'd much rather just hit up a local bar and drink it in peace...
#16 ·
fadedpilot2 said:Can someone give me a logical explanation for why Tang is under a buck in Austria, but here it's like $4.00 maybe more?! 😕
I remember watching this segment on TV where they interviewed some big shots from our most famous, household-name brands. If I recall correctly, they were talking about things like Nesquik, Gatorade, and a few other local staples—specifically asking why everything is so overpriced back home. This guy actually had the nerve to argue that because these massive corporations want to make a splash in the global market, they *have* to subsidize their exports. Basically, they slash prices abroad just to stay competitive and get recognized internationally, then they make up the difference right here at home since we're already hooked on buying them. Honestly, listening to him, I felt like I was losing my mind.
And believe me—the small mom-and-pop shops that I know personally (I can't speak for the giant retailers)—they simply can't afford those massive markups on big-name brands like Kraft Heinz or similar stuff; by the time they even buy it from the distributor, the cost is already through the roof.
#17 ·
fadedpilot2 said:Can someone give me a logical explanation for why Tang is under a buck in Austria, but here it's like $4.00 maybe more?! 😕
I remember watching this segment on TV where they interviewed some big-shot executives from our most famous, household brands. I think the question was specifically about stuff like Cocoa Puffs or Gatorade—basically why everything is so overpriced locally. And honestly, the guy’s answer blew my mind. He basically argued that since these massive corporations want to make a splash in international markets, they HAVE to subsidize their exports. They slash prices abroad just to stay competitive and get noticed globally, then they make up the difference right here at home because, let's face it, we’re already hooked on these products. I felt like I was losing my mind listening to him try to justify it.
And believe me—the small corner stores I frequent (I can't speak for the giant chains)—they can't afford to slap huge markups on those big brands like Kraft or Nestlé, mostly because the wholesale cost is already through the roof.
#19 ·
electrictiger21 said:I remember watching this segment on TV where they interviewed some big-shot executives from our most famous, household brands. I think the question was specifically about stuff like Cocoa Puffs or Gatorade—basically why everything is so overpriced locally. And honestly, the guy’s answer blew my mind. He basically argued that since these massive corporations want to make a splash in international markets, they HAVE to subsidize their exports. They slash prices abroad just to stay competitive and get noticed globally, then they make up the difference right here at home because, let's face it, we’re already hooked on these products. I felt like I was losing my mind listening to him try to justify it.
And believe me—the small corner stores I frequent (I can't speak for the giant chains)—they can't afford to slap huge markups on those big brands like Kraft or Nestlé, mostly because the wholesale cost is already through the roof.
Exactly. That is my point. These companies charge exactly what the market will bear. It inevitably boils down to the fact that goods cost more here than abroad simply because our citizens are willing to pay a 20% premium. Coca-Cola wouldn't survive in Austria under $4.00 because the competition there is much fiercer; they would either have to drop their prices or lose their shelf space entirely. I realize this is frustrating for the consumer, but if 99.9% of people in America owned these corporations, they would likely set the exact same prices.
The paradox is that we attempt to protect our interests by boycotting domestic firms, yet they have no incentive to lower prices as long as enough people continue to pay the higher rate.
That is just how capitalism works. 🤷
#20 ·
Look, there's no way I'm ever picking up that Coca-Cola until they drop the price down to something like $2.00. That's actually a fair price, you know?
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