The .99 Cent Experiment

This company found a way to keep their drinks at 99 cents for the past 25 years. And despite inflation, every can is still that cheap. And the strategy behind this is actually genius, because there's no other soda companies on earth that were able to keep their prices that low. But why not? It's because of how different companies think they need to make money. For example, Coca Cola thinks about it is that if we wanna make sales, we have to advertise. So they spend 50 cents per year, per person on earth to advertise their product. From their point of view, this is absolutely worth it because they get so many more customers that it makes them way more money long term. But there's a catch. It means that Coca Cola has to be more expensive because they spend all this money were to stay, they wouldn't be enough money back from the money they spend advertising. And that's where Arizona's 99 cent strategy actually comes into play. You see, their annual marketing budget is exactly $0. Which means that their founder, Don, never has to raise the price to try to make up for it. And by keeping 99 cents, people talk about it so much that word of mouth does all the marketing for them. On top of that, when Don was asked why not increase the price? He said this. We're successful. We're debt free. We own everything. Why have people are having a hard time paying their rent have to pay more for your drink?