Friday, November 16, 2012

Why Coke cost a nickel for 70 years

The answer: the original founder didn't think bottled Coke would catch on, so when a bunch of lawyers made a proposal to buy syrup at a given price forever, he took it just to get them out of his office.

Bottled Coke took off, and Coke couldn't raise the price of syrup - but it could put the nickel price prominently in every ad it published.  It took the syrup buyers 70 years to capitulate.

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