Why there is not a pit in Chicago for Dr.Pepper is beyond my comprehension. I can guarantee there is money to be made. Ask anyone and they will tell you I suck down my fair share of Dr.Pepper daily. Been doing that since my late teens when I was working in restaurants. It is this addiction that puts me in constant contact with the schizophrenic pricing policies of my local bottler and the all mighty Dr. Pepper Snapple Group down in Plano Texas. Now here’s the thing; I live in a good size Midwestern market and the price swings here are enough to have an oil trader holding on with both hands.
On a “normal” day prices run $4.59 per 12 pack and $1.69 for a two liter. The bargains start (as in scoop up the store limit multiple days of the sale) when 12-packs hit $2.50 and two liters go for $1. For those doing the math in their heads let me help. A drop from $4.59 a twelve to $2.50 is a 46% drop. For the two liters it is a drop of 41%. Then there is the gray area, sales like 3 12-packs for $10 or 4 for $12. This is not a once a year price move. I am talking every couple of weeks if not weekly there will be a reversal in trend. Addictive consumption and consistent high percentage price swings, how is that not a recipe for money to be made on futures contracts? The oil boys seem to be making out ok.
Carbonated water, high fructose corn syrup, caramel color, phosphoric acid, natural and artificial flavors, sodium benzoate, caffeine (my personal favorite). Now someone please tell me which of these pieces cause prices to swing 50%?
So enough already, start a pit and let’s get a position on. I have watched prices and timed my purchases well enough to have a running stockpile of about 14 12-packs in the basement. Average price somewhere south of $2.90 per. I am highly confident I am ready for the big time. Been practicing my hand signals and screaming. Wake up Merc! Both of us are missing out on some money here.
So if you have some strings to pull with the Chicago Merc then start yankin’, send me an e-mail right after. I can be ready to start trading an account within 48 hours. Or if you can explain why prices swing 50% or more please post a comment. I am sure I am not alone in questioning the soda people’s pricing policies. Thanks and let me know.