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Toothpaste
Being the engineer I am, a kind of hands-on
economist, I always squeeze the toothpaste tube
from the bottom. Each day I expect to see the
efficiency of this action save time and save wasted
movement while getting even with Heisenberg by
creating something sure, ordered, and to me at
least, artistic.
However, my wife, the artist, will grab that very tube's
belly in her fist and impetuously squish it like gesso or
alizarin purple in case it might dry before reaching the
canvas...err...toothbrush. So, after thirtysomething
years of an otherwise near perfect marriage, I discovered
Mentadent Fluoride Toothpaste with Baking Soda and
Peroxide! It comes with its own stand and offers
refillable cartridges. But I digress...
I went to the supermarket to pick up a refill. The
price was $3.49. Right next to it was the complete
and bundled product, complete with plastic stand
and "refill" (cartridge, actually) in a package barely
one inch longer in one dimension...and you'd never
guess...it too was $3.49!
What a dilemma. Now this isn't the same as bundling
chicklets, tires, beef, or slinging raw sewage. Although the
packaging stated that the carton is made from 100% recycled
paper (min. 35% post consumer content -- whatever that
means). Just then some inner consumer urge said to me...
"get the whole thing, base and refill, the price is the same",
but just as quickly, the engineer in me said..."but you
already have the base. It's made of plastic and still has
another 400,000 plus hours MBTF if the dog doesn't
get it". Besides, be the good fellow and keep the waste
stream minimized. Where's my incentive though? Why
shouldn't the refill be less money? If they're going to bundle,
I thought, why aren't the prices different? Shouldn't they be?
I didn't buy it. My toothpaste was running low so I went
to two major "pharmacies" (you know, the discount ones
with shopping carts and rebuilt car engines for sale) and
guess what? The prices were exactly the same. $3.49 for
each and every one! This was no pricing mistake, it must
be some kind of conspiracy, I was sure.
However, after some considered reflection and my first
hand experience with the manufacture of high volume
products (minicomputers and VT100's), I conclude that
the paperboard packaging actually costs more than the
stand, or base. To be sure, a plastic-injection moulded piece
like the base, individually made from a few polycarbonate
beads, likely has a manufacturing transfer cost of less than a
nickel at the volumes Cheesebrough-Ponds are making them.
The carton, with its multi-colored ink, glue, folds, tear-tab and
lot number serialization likely costs five or more times the
cost of the base alone. And you've got to have it, bundle or no.
This thought exercise is not indifferent to that of Polaroid
or Kodak giving away their cameras to profit on their film.
The film, like the toothpaste, needs a vehicle...a camera,
or stand...to make it all work.
But wait a minute, I thought some more. Is this really
bundling? What makes these products bundled or unbundled?
Aren't they really two separate products? Why not?
They *are* distinct. At one time, and at only one time do I need
the base (or camera) to use it all. And these onetime costs are
at the noise level, initially and forever, even for the consumer.
So it seems to me that to be bundled or not to be bundled --
this situation merely manifests itself as a philosophical question:
"What is the product?" This must be understood and agreed upon
first before questions of costs, advertising, marketing loss leads,
or unfair leveraging. It's unique. Now I know what you're thinking,
so the next time I go to the store, I will check the prices, and
the form, fit and function, of Mentadent's competition, and
maybe the "bundled-to-refill" ratio, too. Somehow I don't
think the store manager will be quite pleased to find a lot of
toothpaste packages lying about and crying 'rape' all over the shelves.
Certainly, I would be surprised if I found out refill "A" fits
base "B". I doubt it, but with economics of this situation who
should care? Except those of us into philosophy, of course. <g>
[Just some late night thoughts while listening to Mozart --
with apologies to Dr. Lewis Thomas].
Erick
BTW, in case you're wondering, I found and bought the
"Twin Refill" (bundle?) for $5.49. Bargain choice!