Why is cottage cheese with pineapple or onion 80%more expensive than Plain-when the ingredients are cheaper!?

Answer 1

This pricing strategy is called price targeting.
By offering a standard and a similar, but improved premium product the seller increases their amount of revenue. This is not driven by production cost, rather than by perceived value of the consumers - which represents an opportunity to extract more money from buyers.
Some consumers will say paying a lot extra is not worth it, and still buy the plain cottage cheese. Then there are some consumers who like the pineapple taste, see that as a better product than the plain one and are willing to pay more - because even a 50% price increase is 50 pence or less in cash terms to pay more. Then there are some consumers who do not care for plain cottage cheese, but perceive pineapple cottage cheese as a tasty snack, and may compare it to chocolate bars or health food bars, etc. and feel that between the alternatives they are looking at for a snack, the pineapple cottage cheese has an OK price - They are not at all interested in how its price compares to that of plain cottage cheese, as the plain version has no value to them.

As a consequence of price targeting the seller segments the market, earns premium margins from consumers who like the premium product and still earn good margins from buyers of the plain product. As a result they sell more pots of cottage cheese overall and earn a higher average margin on all pots.

Another example is the car industry - selling standard models and those with extra features. Invariably they make good cash on all extra features and earn more money and sell more cars overall compared to selling only a standard version or only an expensive 'all features included' version (or even both with nothing in-between)

Hope that helps.

Answer 2

the ingredients may be cheaper but you have to take into account the cost of production in terms of volumes produced, production line, extra labor needed, final sales cost, etc.
I mean by this that not all the people that eat plain cottage will eat spiced cottage So it takes more labor to produce spiced cottage. The smallest the volume to be produced is, the more expensive the labor will be and this is transfered into final price. They are called deli products which means they are available in many places but the public that will buy them is very specific.

Answer 3

Because of the extra manpower needed to chop pineapples and onions into ickle pieces and stir it into the cottage cheese. Companies that offer varieties of cottage cheese also have to accomodate whole families of oompa loompas as they have been found to be exactly the right size to be able to chop fruit/vegetables to the requisite size.

Answer 4

Good question, and why does an onion pizza cost the same as pepporoni, when onion is much cheaper? It's a matter of us paying to be lazy. I always chop my own onions and add them, rather than paying someone else to do that for me.

Answer 5

Have you considered how hard it is to breed cows that produce milk and cream with pineapple chunks or shredded onions evenly dispersed?

Answer 6

Because they are specialty flavors and easier to buy prepackaged that way instead of mixing it up yourself. Many people like things easier so are willing to pay more for premixed foods. If they are willing to pay more, the company will certainly charge more.

Answer 7

I guess they don't have to shake the cow as much, lol.

Answer 8

IT'S MAKING TIME & LABOUR IS MUCH.