Why are prices on life's "necessities" sometimes so crazy?

[reader2580]

I was at Target last night and toilet paper was on my list.  The store brand is $6.59 or so for a 12 pack or $12.59 for a 24 pack.  I was debating getting the 12 pack or 24 pack and then I noticed a 36 pack for only $2 more ($14.59).  You would be crazy not to get the 36 pack over the 24 pack unless you don't have the room.

Why do necessities such as toilet paper have such crazy pricing?  You can get 50% more for only about 15% more money.  I don't buy toilet paper at Sam's Club because most of it is name brands that still cost more in bulk than the store brand at Target.  The stuff that is cheap at Sam's Club is really poor quality and you often have to use more of it.

[Orvell]

I feel like "because profit" isn't what you're looking for, but I think that's pretty much the answer.
As much as necessities are, for the most part, necessary, the way they are produced, marketed, and distributed doesn't differentiate them at all from, say, candy bars. You can buy Charmin and Snickers, or you can buy the house brand. They're both products being sold. :/
I think the quantities per package deal is similar across products, too.
Despite the price savings, I don't always buy bulk, simply because I don't want to be a warehouse (I live in a small place with a cat who likes to chew on fresh toilet paper rolls. Thanks, cat.), but you're dead right; you can make some smart calls and save some bucks!

[JZinCO]

... you can make some smart calls and save some bucks!

I poop at work
:)

On a serious note, yeah I don't get it. The pricing would make sense if it tracked with the marginal cost of producing, packaging and distributing more product. But I hazard to guess that the profit margin for a unit is greater at low volume than small volume. In other words, it is better for a seller to sell at low volume and better for a buyer to buy at large volume. So, I go with the latter.

[Orvell]

... you can make some smart calls and save some bucks!

I poop at work



:)

AHAHAHAHAHAH
You know, I think I needed that this morning. :) Thanks for making me cackle.

[JZinCO]

Thanks. I was worried it was too immature so I added some serious thought. Really though, I'm at work by the time nature calls.

[okits]

How is your toilet paper so expensive?  I buy name brand on sale (and it's always on sale somewhere) for 20-25 cents a roll (most recently, $4.99 CAD for 12 double rolls, which is about $3.75 USD.)

Does the Canadian government subsidize paper products?  Truly confused, I thought we paid more for just about everything up here.

[reader2580]

The price of the TP isn't really the issue here.  It is probably not the absolute best price if I shopped around long enough.  The cheapest TP I can find on the Sam's Club website is still more than what I paid at Target.  I don't use enough TP to really worry about getting the absolute best cost.  I can't stand the expensive TP like Charmin anyhow and would probably give it to a food shelf if someone gave it to me.

The whole deal here is how little they charged for 50% more TP compared to what the first 24 rolls cost.

[Teacherstache]

I just paid $13 for 30 rolls of Scott Tissue at Target this morning and thought I got a pretty good deal.

$20 for 30 rolls ($9.99 each for 15 rolls)
-$5 gift card when you buy two, so I bought two.
-$2 coupon
=43¢ per roll

[choppingwood]

On consumer products like TP, it is a marketing thing. They make huge amounts on people who like to buy on sale, so something in the product line is often on sale. They also make huge amounts on people who don't shop around and check unit prices, so everything in the product line doesn't go on sale or have a reasonable price. The cost of the product to make is a relatively small piece of the pricing puzzle.

[Orvell]

The price of the TP isn't really the issue here.  It is probably not the absolute best price if I shopped around long enough.  The cheapest TP I can find on the Sam's Club website is still more than what I paid at Target.  I don't use enough TP to really worry about getting the absolute best cost.  I can't stand the expensive TP like Charmin anyhow and would probably give it to a food shelf if someone gave it to me.

The whole deal here is how little they charged for 50% more TP compared to what the first 24 rolls cost.

It's probably a lot like fast food joints, right? The cost of production is so cheap that they don't care how many rolls you buy, they care how many translations you incur. They want yo to come back. More items = more opportunity for profit. So if you buy a package with fewer rolls, you buy more of those packages, they get to make more money. My guess is that the more expensive, 24 pack was easier to find, and maybe had better packaging?

[reader2580]

It's probably a lot like fast food joints, right? The cost of production is so cheap that they don't care how many rolls you buy, they care how many translations you incur. They want yo to come back. More items = more opportunity for profit. So if you buy a package with fewer rolls, you buy more of those packages, they get to make more money. My guess is that the more expensive, 24 pack was easier to find, and maybe had better packaging?

If the store wanted me back more often they would price the small packages for less than the really big packages.  The 12 pack is 55 cents a roll while the 36 pack is 40 cents a roll.  The 24 pack was 53 cents a roll.  If they did price the small packages for less you could still buy several of them.  A true mustachian would probably buy large amounts of TP to minimize trips to retail stores.

The different sizes were all next to each other on the shelves.  Packaging is all the same since it is store brand.  There is also a 6 pack of the store brand too, but I wouldn't buy so little so I didn't look at the price.

[Orvell]

It's probably a lot like fast food joints, right? The cost of production is so cheap that they don't care how many rolls you buy, they care how many translations you incur. They want yo to come back. More items = more opportunity for profit. So if you buy a package with fewer rolls, you buy more of those packages, they get to make more money. My guess is that the more expensive, 24 pack was easier to find, and maybe had better packaging?

If the store wanted me back more often they would price the small packages for less than the really big packages.  The 12 pack is 55 cents a roll while the 36 pack is 40 cents a roll.  The 24 pack was 53 cents a roll.  If they did price the small packages for less you could still buy several of them.  A true mustachian would probably buy large amounts of TP to minimize trips to retail stores.

The different sizes were all next to each other on the shelves.  Packaging is all the same since it is store brand.  There is also a 6 pack of the store brand too, but I wouldn't buy so little so I didn't look at the price.

Logically you're right, so there's got to be something more at play here. I bet choppingwood is dead right about the sales game. See a red sticker, buy that item regardless, and all the mind games that come with it.

[reader2580]

On consumer products like TP, it is a marketing thing. They make huge amounts on people who like to buy on sale, so something in the product line is often on sale. They also make huge amounts on people who don't shop around and check unit prices, so everything in the product line doesn't go on sale or have a reasonable price. The cost of the product to make is a relatively small piece of the pricing puzzle.

The 36 pack was not on sale.  I usually buy the 12 pack because the 24 pack is only 2 cents per roll less.  I don't recall ever seeing the 36 packs before.  I wouldn't usually buy so much TP at once, but I happened to see the price on the 36 packs and couldn't believe the price.  I had to check if the price tag was really for the 36 packs as the price seemed so much less per roll.

The reality is I was at Target buying some other household necessities like dish soap and dental products and forgot TP on my list.  When I was checking out a coupon popped out for 75 cents off any size of the store brand TP which reminded me that I needed some.  The prices I mentioned are all before coupon.

[choppingwood]

On consumer products like TP, it is a marketing thing. They make huge amounts on people who like to buy on sale, so something in the product line is often on sale. They also make huge amounts on people who don't shop around and check unit prices, so everything in the product line doesn't go on sale or have a reasonable price. The cost of the product to make is a relatively small piece of the pricing puzzle.

The 36 pack was not on sale.  I usually buy the 12 pack because the 24 pack is only 2 cents per roll less.  I don't recall ever seeing the 36 packs before.  I wouldn't usually buy so much TP at once, but I happened to see the price on the 36 packs and couldn't believe the price.  I had to check if the price tag was really for the 36 packs as the price seemed so much less per roll.

The reality is I was at Target buying some other household necessities like dish soap and dental products and forgot TP on my list.  When I was checking out a coupon popped out for 75 cents off any size of the store brand TP which reminded me that I needed some.  The prices I mentioned are all before coupon.

So, if it is a new size for them to carry, the pricing may be to get customers over the hump of buying a larger size. The coupon is designed to remind you to look at TP, and then make your choice.

The next time, the pricing might be different, to focus you on other packages.

You have your interest, which is to buy what makes the most sense for you. The store has its business, which is to convince you that TP can be bought advantageously at Target. It is a partnership. But just because it doesn`t look logical what they are doing, doesn`t mean they aren`t been logical.

Sometimes they are wrong, though. They lost a ton of money by not understanding Canadian consumers and left the country in a hurry.

[reader2580]

I have purchased my TP at Target for years now, always the store brand so Target didn't gain a new customer with the coupon.  I am pretty certain they track my purchases by my credit card which is probably why I got the TP coupon at check out.  (Yes, I pay off the credit card if full every month.  2% rewards everywhere.)

[choppingwood]

I have purchased my TP at Target for years now, always the store brand so Target didn't gain a new customer with the coupon.  I am pretty certain they track my purchases by my credit card which is probably why I got the TP coupon at check out.  (Yes, I pay off the credit card if full every month.  2% rewards everywhere.)

And you used the coupon to try a new product in their line-up (The 36-roll). Everyone is happy.

[okits]

Probably has something to do with consumer behaviour...  Like customers can't math or won't drag home/store a giant package of TP.  Because, really, it doesn't go bad and unless you expect to die shortly you will probably continue to use it.

Reminds me of diaper package sizes. For twice the cost get 3x the diapers. Who is buying those small packages??

[Zinsch]

What I find way more disturbing is if the smaller size is cheaper (per unit) than the larger size.
Have seen this with milk and butter (and I think some other stuff, too).

Why would anyone ever buy one gallon of milk, if two half gallons are cheaper?

[okits]

What I find way more disturbing is if the smaller size is cheaper (per unit) than the larger size.
Have seen this with milk and butter (and I think some other stuff, too).

Why would anyone ever buy one gallon of milk, if two half gallons are cheaper?

That pricing must prey on people who assume the bigger size is automatically cheaper per unit.  I think consumers have been conditioned to think bulk = deal.

[obstinate]

Toilet paper is a non-necessity. Get a bidet. Will pay for itself after about 64 rolls of toilet paper.

[innkeeper77]

What I find way more disturbing is if the smaller size is cheaper (per unit) than the larger size.
Have seen this with milk and butter (and I think some other stuff, too).

Why would anyone ever buy one gallon of milk, if two half gallons are cheaper?

The simply brand of juices does this, and I have seen it in other brands at well. Its ridiculous, when the cheaper bulk option causes MORE packaging waste... I don't get it. I guess it takes advantage of those who cannot do math. But why wouldn't they have the prices equal in that case?

[reader2580]

And you used the coupon to try a new product in their line-up (The 36-roll). Everyone is happy.

I have no idea if the 36 pack is new or not.  I may have just missed it in the past being on the bottom shelf and the fact I don't normally look for packages that big.  The coupon was 75 cents off any size.  I had planned to get my normal 12 pack until I realized the 36 pack is so much less per roll.  I was having trouble find the 12 packs and that is really the only reason I even saw the 36 packs.

[JZinCO]

What I find way more disturbing is if the smaller size is cheaper (per unit) than the larger size.
Have seen this with milk and butter (and I think some other stuff, too).

Why would anyone ever buy one gallon of milk, if two half gallons are cheaper?

Cheese too. I often find the intermediate size block is the cheapest. I once actually bought a big pack of sliced kraft cheese because it was very cheap. The individual slice packaging really bugged me though. I am guessing the 'cheese' was probably cheese product and not real cheese.
I also am surprised when the name brand stuff is cheaper per unit weight/volume than the store brand stuff.

[Goldielocks]

I just paid $13 for 30 rolls of Scott Tissue at Target this morning and thought I got a pretty good deal.

$20 for 30 rolls ($9.99 each for 15 rolls)
-$5 gift card when you buy two, so I bought two.
-$2 coupon
=43¢ per roll

yep!  40 cents a double roll of 2 ply is my benchmark price book price.  Although that seems to be getting out of date.   under 44 cents is what I bought the last 2 times, and still waiting to stock up at a better price.

[pharmmm]

Since you bring up coupons, I wonder if that's part of the pricing scheme.  For example, a $0.75 off any pack of TP coupon - if you got multiple copies of that coupon, and the smaller pack was priced similarly per roll to the larger pack, once the coupon was applied, the smaller pack would be a much better deal and the manufacturer could (potentially) lose out. They might have to hedge their bets because extreme couponers mess up the market.

I still lean towards the smaller, more expensive "unit dose" packs mostly marketing to people who either don't think enough to price per unit or can't afford bulk due to not having enough money or space at any given time.

[reader2580]

The coupon was one of those printed at the check out so no getting multiples copies.  The savings on the 36 pack was enough that I don't think the small packages with coupon would ever be cheaper if I could get a bunch of coupons.

[Zette]

And you used the coupon to try a new product in their line-up (The 36-roll). Everyone is happy.

I have no idea if the 36 pack is new or not.  I may have just missed it in the past being on the bottom shelf and the fact I don't normally look for packages that big.  The coupon was 75 cents off any size.  I had planned to get my normal 12 pack until I realized the 36 pack is so much less per roll.  I was having trouble find the 12 packs and that is really the only reason I even saw the 36 packs.
[/quote

There is some very savvy psychology behind the sizes and pricing.  Psychologists who study consumer behavior have figured out that everybody has a price point of what they are willing to spend.  They advise companies to create options that target different price points so as to capture the maximum number of people.  So you have the smallest package for those who are sensitive to minimizing their cost in THIS purchase (think someone living paycheck to paycheck, who needs those extra dollars for another item).  The medium package is double the cost right now, but works out to a small savings over time -- this attracts someone who is able and willing to pay more today and is maybe a bit busy and can just default to "the 24 pack is usually a better deal" without running the numbers.  The large package is to attract the serious bargain hunter.  It is "hidden" down out of sight so only those willing to pay the highest amount today who are motivated to spend time searching for it and running the numbers will buy it -- but it keeps that customer from going to a lower priced competitor.

[FenderBender]

I was at Target last night and toilet paper was on my list.  The store brand is $6.59 or so for a 12 pack or $12.59 for a 24 pack.  I was debating getting the 12 pack or 24 pack and then I noticed a 36 pack for only $2 more ($14.59).  You would be crazy not to get the 36 pack over the 24 pack unless you don't have the room.

funny because i've not used toilet paper in 7 years - it is not a necessity at all.  i use a tibo which is a plastic thing that looks like a sauce pan, fill with water, wash ... i won't explain how to use it.  i started using it when i met my wife who is from asia.  using water after doing number 2 is so much better than paper - you get way more clean.  when i have to use paper away from home, afterwards as i leave the bathroom, i feel dirty. 

[Drifterrider]

I was at Target last night and toilet paper was on my list.  The store brand is $6.59 or so for a 12 pack or $12.59 for a 24 pack.  I was debating getting the 12 pack or 24 pack and then I noticed a 36 pack for only $2 more ($14.59).  You would be crazy not to get the 36 pack over the 24 pack unless you don't have the room.

Why do necessities such as toilet paper have such crazy pricing?  You can get 50% more for only about 15% more money.  I don't buy toilet paper at Sam's Club because most of it is name brands that still cost more in bulk than the store brand at Target.  The stuff that is cheap at Sam's Club is really poor quality and you often have to use more of it.

Packaging and transportation.  Shop based on price per square foot, not on number of rolls.

[Mikila]

I buy it CHEAP  at Dollar General, as in $3.50 for 4 1200square ft rolls.  Each one lasts our 4 person household about 5 days, so we wipe our butts for around $4 a month.  I could complain and say it's thin and Wal-Mart toilet paper (in the restroom there) is better.  My grandma wiped with old newspapers back in the day, so I guess I don't have it so bad. 
I refuse to spend any the big bucks on a disposable item.

[TheAnonOne]

Costco sells a gigantic pack for less than the OPs advertised rates... I should go do the math for exact figures but it's bigger than anything I can find at Target and costs around $10. Though, admittedly, I did the math years ago and just keep buying it now.

Regardless, a "per roll" rate is not that helpful since rolls themselves are different sizes and thicknesses. Thickness and quality, also help you use less, so more is not always more.

[Jakejake]

Shop based on price per square foot, not on number of rolls.

This. The price per roll is meaningless. I use the penny a square foot rule for stocking up (for two ply, one ply is the work of Satan.)

[reader2580]

I was not/am not looking for the absolute best price on TP.  I was simply stating how crazy the price differences are between different sizes of the exact same product.  I confirmed that each package had the same amount of TP per roll.

I'm sure I could spend less for TP if I spent time researching my TP purchases.  I checked Sam's Club via their website and I'm not sure any of their TP was less expensive although I didn't look at price per square foot.  Dollar General's double ply is probably less based on what Is see on their website, but I don't have a Dollar General nearby.

[GuitarStv]

What I find way more disturbing is if the smaller size is cheaper (per unit) than the larger size.
Have seen this with milk and butter (and I think some other stuff, too).

Why would anyone ever buy one gallon of milk, if two half gallons are cheaper?

I dunno if it's just where I live, but cottage cheese is always cheaper in small containers for some reason.  Weirds me out.  So instead of two big containers I end up getting three small ones.

[dude]

Don't know that it qualifies as a "necessity," but the cost of freakin' shaving razor cartridges always blows my mind.  And I'm not buying the 10-bladed Cadillac cartridges, just the old double-bladed replacements that fit my Gillette Sensor shaving stick.  These things honestly can't cost more than a few pennies to manufacture.  The mark-up has to be incredible.

[GuitarStv]

Switch to double ended safety razors.  It's less than 5 cents a blade, and they shave just as well in my experience.

[turketron]

Grow a beard :D

[teacherwithamustache]

Order all consumer staples thru Amazon Prime.  Get them delivered to your house every month.  Free shipping with Prime.  I find it 30-40% cheaper on most products.

TP, baby wipes, diapers, laundry detergent, deodarant, paper towels, razors, etc etc.

[Guses]

I was not/am not looking for the absolute best price on TP.  I was simply stating how crazy the price differences are between different sizes of the exact same product.  I confirmed that each package had the same amount of TP per roll.

I'm sure I could spend less for TP if I spent time researching my TP purchases.  I checked Sam's Club via their website and I'm not sure any of their TP was less expensive although I didn't look at price per square foot.  Dollar General's double ply is probably less based on what Is see on their website, but I don't have a Dollar General nearby.

Have you thought that maybe, just maybe... Target intentionally priced their TP that way so as to confuse their mustachians customers so that they spend hours thinking about TP and Target pricing?

In a world where attention is paid for dearly, you sure thought a long time about that toilet paper!

:P

[merula]

I have purchased my TP at Target for years now, always the store brand so Target didn't gain a new customer with the coupon.  I am pretty certain they track my purchases by my credit card which is probably why I got the TP coupon at check out.  (Yes, I pay off the credit card if full every month.  2% rewards everywhere.)

You'd get 5% off instantly if you used their credit card. 5% today is better than 2% in a month.

And yes, they do track. And they can track better if it's their own card. So you're selling your soul for cheaper TP.

My soul was pretty dinged up anyway, so the TP's worth it.

[Leanthree]

What I find way more disturbing is if the smaller size is cheaper (per unit) than the larger size.
Have seen this with milk and butter (and I think some other stuff, too).

Why would anyone ever buy one gallon of milk, if two half gallons are cheaper?

I dunno if it's just where I live, but cottage cheese is always cheaper in small containers for some reason.  Weirds me out.  So instead of two big containers I end up getting three small ones.

Most likely no one in the store thought about this and it isn't intentional.

Back when the McDonalds dollar menu first came ~10 years ago (when I stupidly ate at McDonalds...) out there were so many price inconsistencies. 3x 4 piece for a dollar each was cheaper than a $3.19 10 piece. Double Cheeseburger without Cheese was $1 but a double Hamburger was $1.09. Always got weird looks.

[reader2580]

You'd get 5% off instantly if you used their credit card. 5% today is better than 2% in a month.

I don't buy enough at Target these days to make it worthwhile to get a red card and have something else to track.  I might save $10 a year.

[Kaspian]

What I find way more disturbing is if the smaller size is cheaper (per unit) than the larger size.
Have seen this with milk and butter (and I think some other stuff, too).

Why would anyone ever buy one gallon of milk, if two half gallons are cheaper?

I dunno if it's just where I live, but cottage cheese is always cheaper in small containers for some reason.  Weirds me out.  So instead of two big containers I end up getting three small ones.

This seems to happen a lot with Red Hot sauce where I live.  And occasionally with cases of beer.  For a long time Moosehead beer was cheaper in the 16 case over the 24.  ...So, I'd buy two 16s.  :)

[alsoknownasDean]

I guess it'd be that the larger pack doesn't cost $2 more to make/ship,  and they're getting more money from you by selling you the larger pack.

Also yeah that sounds expensive for a 12 pack of toilet paper.

I still don't get why it's so hard to find toilet paper made from recycled paper. It just makes sense to use recycled paper.

Although I've noticed that the supermarket often sells a 2L bottle of Coke for less than the 600mL bottles.

Sent from my LG-D855 using Tapatalk

[Goldielocks]

I guess it'd be that the larger pack doesn't cost $2 more to make/ship,  and they're getting more money from you by selling you the larger pack.

Also yeah that sounds expensive for a 12 pack of toilet paper.

I still don't get why it's so hard to find toilet paper made from recycled paper. It just makes sense to use recycled paper.

Although I've noticed that the supermarket often sells a 2L bottle of Coke for less than the 600mL bottles.

Sent from my LG-D855 using Tapatalk

I think the type of source fiber is different for tp.  Here tp plants make soaker pads, tp. Paper toweling, and completely different mfr plants make newsprint and office paper.

Recycled content in TP is therefore the new trimmings from the last production run.