Sunday, November 1, 2009

Why we no longer sell Pepsi products


Why we no longer
sell Pepsi products

Ever wonder why soda’s or bottled water cost more at a restaurant or service location than at a big box store, like Sam’s club? $1.49 for Aquafina you may question, “Well I can buy a 24 pack of bottled water at Sam’s club for $4.99, which is .21 cents each!”
Here’s why: to have any product delivered to a business is a convenience service (you didn’t have to use your vehicle, pay for employee to shop, pay for product, transport, and then unload). At the store, it is sold warm, so then you need refrigeration service or else when you ice down your beverages, it will take twice as much ice to bring down the temperature to serve – at $2.25 on average – a bag of ice adds up.
Here’s the unexpected padded expense that many people may not be aware of: Pepsi Rewards Program. Many companies institute these programs for purchasing employees to reap rewards that essentially trickle down costs to the employer, and ultimately the customer.

No longer sell Pepsi After a year or so, I looked at our Pepsi Rewards to find out what it is they were offering that I didn’t really want: I turned in $16,000ish points for a “Body Rider Dual Trainer.” Once I put it together, I could see why this product was offered as part of a “freebie point scheme.” It actually didn’t work at all until I made some modifications to the pedals so that it didn’t grind against the back wheel while pedaling. It also had been a previously opened package. Ever wonder what happens to all those products that get returned due to defects? I have an idea…Ever wonder why Pepsi is in the business of offering Rewards to Business Merchant accounts instead of offering a competitively priced product? – I do.
Add in two more major cost contributing factors: 1. Pepsi has a minimum that must be purchased to keep account active –cases of bottles/cans and bag in the box syrups – amounts depend on account negotiations, but can be steep. 2. Everything except water not only expires, within a few months if you’re lucky, but becomes unpleasant to drink due to deterioration of the syrup mixture.
Typical call from Pepsi service to Cater Express:
Pepsi: “Hi, calling to take your Pepsi order.”
Me: “We don’t have an order this month, we couldn’t sell any product.”
Pepsi: “If you don’t order, we may need to cancel your account.”
Me: “Ok.”
Pepsi: “We don’t want to cancel, but I see on your account that you are required to buy xxx of Aquafina.”
Me: “That’s not part of my contract.”
Pepsi: “Oh, ok, my mistake. We’ll call you next month.”
Me: “Ok.”

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