Management Tools

Sometimes I have to distract myself from the anger and frustration of things I cannot by focusing on something else. Looking at you, SCOTUS.

That’s not fair, this week’s decisions prove that it’s a disservice to the words “supreme” and “justice” to consider those recently appointed to the high court as anything other than Extreme Court Injustices.

I should distract myself from their work by focusing on the irony that two-thirds of the court now represent the views and interests of one-third of the country.

But instead, I distract myself with lesser frustrations and injustices. Yeah, I focus on things that make me angry and frustrated that I can at least do something about when the things I cannot do all that much about get me down.

For instance…have you ever heard of Hint water?

It’s like La Croix, if you opened it and left it out overnight. Don’t get me wrong, I enjoy both. It’s just Hint has – in my opinion – jumped the ethical shark.

If you look closely at the pic, you can see it’s an Amazon ad for a 12-pack for $20.99 – for water.

That’s $1.75 a bottle. You can still pretty much buy a 12-pack of La Croix for the price of two bottles of Hint.

I was first introduced to Hint when I was working at the airport. PDX is an amazing airport, for sure. One of the amazing things they do is make their businesses within stick to street pricing – so unlike LAX, you won’t find a $16 bottle of kombucha at PDX. They further require their business partners to be minority owned/operated or have a minority business partner. But that’s not the point. The point is that they make their business partners provide annual pricing audits to prove they are within 20% of street pricing.

The business I was with used the infamous Peterson’s convenience stores as one of their comparable stores.

So, yeah…my employer at the airport used a business that is notoriously 30-40% overpriced to prove they were “within” 20% of street pricing. If you’re on the wrong side of the street, though, that math won’t hold up.

But this is where I first tried Hint, which I think we sold for around $2-3/bottle.

Mind you, we bought it for a buck a bottle from our wholesaler. None of this bothered me since my rent at the airport was a percent of sales. Gross sales. And rent was 18% of sales, which was also…gross.

Sidebar: if you’re ever curious about how PDX can afford to consistently be the best airport in America or spend a cool billion on a remodel, now you know. They get 18 cents on every dollar spent there. Port of Portland ain’t messing around.

Anyway, well after I left there, I saw an ad on social media for Hint water. Three cases for a buck a bottle. They promoted it as 30% off, which I thought was a weird spin for a manufacturer.

But they’d jumped on the direct to consumer (DTC) bandwagon and this was their hook.

I bought some. But when I went to reorder, the best deal I could get was 20% off for a certain number of cases. Less than that, if only save 15%. So I stopped buying it.

And they’re still promoting it the same way, basically. Here’s a recent email promotion from them:

Get this, now three cases are $55.99! On sale! So only $1.55/bottle instead of $1.83/bottle.

But here’s why all this bothers me – I used to buy it from my purveyor for about a buck a bottle. That means they already had their markup on that price after buying direct from Hint. I’m guessing Hint sold to wholesalers for around $.75-.80/bottle, but that’s just a guess.

I don’t need this information. It’s just evidence of the stern fucking you get on a daily basis for the privilege of waking up in America.

Spitballing for inflation, a 400% markup to sell direct to consumers seems high. Especially when you think that the 30% off promo I took advantage of at a buck a bottle meant they normally charged $1.30/bottle at that time. Now their regular price is $1.83/bottle. Assuming for the sake of making a generous argument that all expenses raised by that same margin, they’re still making $.50/bottle more selling to consumers directly than they made selling to wholesalers.

Why is that fair?!?

Shouldn’t the reward of running a manufacturing venture and selling to the public as well be…more customers?!? Why do they need to be able to have street pricing be their guide in that arrangement. Seems like the only people that benefits is them. Their wholesalers lose potential business because of it, so they’re losing out. Customers pay the same price either way, so it’s a net zero situation at best for them.

But there’s Hint, pockets so full, they can’t sit down. That makes me mad. Pick a business model and run it.

But unlike the SCOTUS rulings, where all I can do is vote every chance I get which is every other year at best, I can do something about this. I can vote against their business practices with my dollars every day.

That’s a win for this grumpy old man. And for La Croix, apparently.

Management Tools

11 thoughts on “Management Tools

  1. I worked for a manufacturer who should have stepped into DTC sales back when. He managed to shake up a dealer meeting. He lifted a guitar amp onto the podium and asked the auditorium “what is the most expensive part of this product?” The audience hemmed and hawed. He said “Dealer margin. I’ve made my money when this goes out the back door. How many of these do you think I could sell at (dealer net)? Probably a shit load more than I sell you.”

    Liked by 1 person

  2. I’ve long admonished people who complained about price gouging to protest with their pockebook. That would be wallet to you young whippersnappers. Gas prices too high? Reduce your driving by just 10%. If everyone did it, supply would outpace demand and the price would plummet. Remember when Covid locked everyone at home and gas prices fell? Bottled water at the airport too expensive? Last I checked, there were water fountains at ONT for free. They even had a spigot for filling your own bottle. Now, if you really want to get me on a rant, write a post about drug prices in this country! I can remember when a gram of …err, I mean … Oh, never mind.

    Liked by 1 person

    1. Funny you should mention a gram of the old “never mind”…my bestie – aka: the Silver Fox – just brought me a generously sized bag of that stuff from his ex-wife’s stash. His ex has never once in her 70-plus years paid for never mind!

      Like

    1. Yes, I have to admit that my overthinking has a wide-spread targeting mechanism. 🥸
      But in this case, it provides a welcome relief from topics that will actually disable me if I overthink on them, pinning me to my couch until I find something else to draw my attention.

      Like

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