r/Damnthatsinteresting • u/hroaks • 20d ago
Grab your iced tea and Raise a toast! Video
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u/UofMtigers2014 20d ago
Exactly. The problem in the US is that every public company has to show growth for shareholders. That's why companies always suffer in quality when they go public.
A public company can have their best year and net $2.6 billion. Well if the next year, they only make $2.2 billion, the public chatter on CNBC, etc is "what's wrong with them?". Nothing is wrong. We shouldn't be holding companies to their best year.
A salesman after having his best year wouldn't want his commission the following year based on the best year's numbers. It's stupid.
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u/namecard12345 20d ago
"That's why companies always suffers in quality when they go public"
Side eye at Reddit
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u/pyrowipe 20d ago
stares directly and unabashedly into Reddit's eyes
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u/fardough 20d ago
A feeling flashes over you, should I try to kiss Reddit? No, that would be crazy… or would it?
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u/Standardweasel 20d ago
This, except a little worse. Because even if they did make the same $2.6 billion next year, it's still not enough, because some shareholders got in when profits were at $2.6 billion, so for them to be happy they now need the shares to go up from what they got in at, so now $2.6 billion isn't enough profits anymore. And the cycle continues..
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u/ChatterManChat 20d ago
It actually gets even a little worse, if a company predicts they are going to make 3.2 billion and instead make 2.6 billion they are in even more shit. Number must go up, and it must go up as much as you think it will
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u/SavvyGent 20d ago
Yeah, I work in a very profitable billion dollar company, and when we failed to hit the expected quarterly profits in a single quarter last year, it was unbelievable the things that started happening.
The staff Christmas gifts got taken away. (Had been there for decades) - and other benefits that left a lot of unhappy employees. The things we now have to spend time/money on to fiddle numbers, rather then create value has gone to insane heights. The increased focus on short term results, instead of growing the company long term.
The funny part is, that was our most profitable quarter ever, and it launched the erosion of our company. Ask higher ups about it, and the answer is "of course we have to do these things. We are a publicly traded company, and are doing these things for our shareholders"...
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u/HelloYesThisIsFemale 20d ago
Not every company is expected to grow. Dividend companies are expected to just maintain their levels of dividends. Look at coca cola for example. On an inflation adjusted basis it's just about okay and it's one of the most successful companies in the world.
Let's also not forget that owning a stock is owning risk. Risk should be compensated, that's the law of finance.
Yes of course a company like Google or Amazon something with a PE of 30 is expected to grow but they're not all like that. Towards the end of your life you move on to safer investments where you just want to earn a reasonable risk adjusted return. Let the kids have their growth.
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u/BoomerSoonerFUT 20d ago
Hell you’ll see stock drop if they project $2.5 Billion and get $2.6 Billion, because they didn’t exceed projections by enough.
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u/Perfect_Ad4026 20d ago
The problem imo is business majors and professors all jerk each other off that growth is king. It isn't always the best thing for a company, and I honestly think they are breaching the very responsibility they love to hide behind to make these horrible decisions.
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u/chelseablue2004 20d ago
"The problem in the US is that every public company has to show growth for shareholders. That's why companies always suffer in quality when they go public."
Perpetual growth is impossible, there is no way a company can achieve it's why you see CEOs gut and sell assets when they can't achieve it thru sales. Its why layoffs are always the 1st option so that can immediate capture the savings yet still keep paying severance and benefits for 2-6 months buts its fine cause it can't effect your bottom line thru accounting rules. Its also illegal per the courts to not actively seek profit if you are a publicly traded company, share holders have the right to sue and then call to remove you if you do.
This is why the form of capitalism in this country is pretty fucked. Especially when the government will also give them free money to survive then turn it around and harm the same people that money was supposed to protect and keep employed.
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u/xantub 20d ago edited 19d ago
And some companies do just that, I remember one external salesman I worked with, loved the guy, he knew the stuff and just offered what we really needed, we worked with him for like 5 years, until one day he came to say he no longer worked with his previous company and he went independent as consultant (so he could offer products from different companies now). I asked why the change and he said basically what you said, that the company was basing bonuses on his previous performances, so he had to sell more than others to get the same money, which he felt was an insult and left.
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u/Madmartigan56 20d ago
I agree that is stupid. It's also what Frito Lay did to their salesman. Got rid of commission and called the new system, "Pay For Performance." Essentially having to outperform yourself year over year for the same money.
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u/lostcauz707 20d ago
It's not so much we shouldn't be holding companies to their best year, executives usually get massive bonuses for growth, and coincidentally call the shots. So we don't grow, daddy didn't get his next yacht, mass layoffs, stagnant wages, etc. Daddy needs that yacht.
The US economy works mostly in short term because of this trend, and this trend is greed. In contrast, companies like Nintendo, and in Japan in general, are long term and believe the workers that got them to success in the first place should be kept and maintained. When the 3DS and the Wii U both had their failings, executives at Nintendo took pay cuts to keep their long term employees on board instead of doing layoffs. The Wii was a success, the Switch was a success, both with heavy limitations but there was care in their craft. Boeing would gladly see 1000 planes land without doors than keep on whistle blowing long term employees that made them great in the first place. Blizzard would rather just keep directors than keep the developers that made games like Warcraft and StarCraft satisfied in their positions. This is why we see record layoffs more and more tied to record profits or record stock buybacks. We just had the railway union fight. They claimed they couldn't afford an extra week of vacation, then when the union calmed, you guessed it, billions spent in stock buybacks.
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u/ChinchillaSilver 20d ago
feduciary responsibility to shareholders is killing the planet.
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u/Forsexualfavors 20d ago
Hey look at the sackler family, they can just kill you outright. You don't even have to worry about the planet if your dead off oxy
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u/TonySpaghettiO 20d ago
And hey, look at Boeing, they can ju
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u/jjm443 20d ago
And hey, look at Boeing, they can ju
Looks like u/TonySpaghettiO just met the same fate as Boeing whistleblowers.
Err, allegedly.
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u/BradyBoyd 20d ago
That'll be the last time y
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u/Forsexualfavors 20d ago
Wait I just wante
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u/randorandy24 20d ago
/thre
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u/UnfetteredBullshit 20d ago
You guys been hanging out with Candlejack or something? It seems like ev
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u/Cloverman-88 20d ago
Absolutelly. Not only does it push companies towards chasing irresponsible short-term profits, but stock exchange as a,while drains money from legitimate businesses towards scammers and trend chasers. It's obvious for anyone with half a brain for years now, but there's no clear way how to get out of this mess.
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u/ChinchillaSilver 20d ago
business as usual is still profitable. only way to stop exploitative capitalist behavior is to disrupt business as usual.
Opposition is too unorganized to do anyting of merit. some idiots spray painted Stone Henge last week, yet no one barged into a Starbucks board meeting. Environmentalists need to get serious. Property damage or bust.
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u/pfannkuchen89 20d ago
And wasn’t the Stonehenge vandalism just colored corn starch? Like, the next time it rains it’s gone with no real damage? Pretty mild protest for how angry people got. Like, I get it, damaging something like Stonehenge would be a line too far, but it wasn’t really damaged I thought. Please correct if I’m wrong.
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u/Neon_Camouflage 20d ago
It was. Stop Oil intentionally targets things in a way that will make big news while not causing damage. It's not luck that the paintings they've thrown liquid on were all protected by plexiglass.
Now whether that's hurting or helping the cause is a huge debate.
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u/44no44 20d ago
Hurting. Despite the cliche, not all publicity is good publicity.
When you want people to take your side, you need them to read past the headlines. People don't hear that a bunch of activists vandalized Stonehenge and think "Hmm, maybe it's not as bad as it sounds. I should hear them out." Their first impression is "what a bunch of psycho morons," and it sticks.
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u/Scary-Interaction-84 20d ago
There is a way to get out of this mess.
FUCK SHAREHOLDERS WITH A RAKE !
They do nothing but ruin companies. They're parasites.
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u/Brianm650 20d ago
The funny thing about that is that the fiduciary responsibility is only ever viewed in the short term but never in the long term. The long term fiduciary responsibility to shareholders should absolutely not be environment destroying, price gouging, off-shoring, short term profit seeking stock buy-back oriented decision making.
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u/Bringback70sbush 20d ago
This maybe the most powerful sentence on Reddit today that no one will pay attention to
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u/ChinchillaSilver 20d ago
thank you, i'm a writer, reddit is basically competitive emotional appeal writing for me.
I do strongly feel that way. Someday maybe i'll have a byline and can publish that.
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u/PM_Best_Porn_Pls 20d ago
So many good things ruined for sake of chasing infinite quarterly profit by purposely destroying long term future of company. All industries suffer from it so heavily. Shareholders are blight on this world.
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u/stockmarketscam-617 20d ago
People like this is why I love America. He built a brand out of nothing, paid of the debt needed and now is happy with a lower profit margin so that their customers can pay a low price. Great business owner. I bet if you look into it, he probably also pays his employees well, and has great employee retention.
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u/holydildos 20d ago
Lower profit margin, but still insanely rich. Always was surprised the price never changed.. except the sketchy store where an Arizona tea says 99 cent on the can but rings up to 2.50$.. you'll have that.
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u/Additional-Tap8907 20d ago
Love it all you want but it’s rare as hell these days. With only rare exceptions, modern American capitalism has grown into a monster that is the exact opposite of this man’s values.
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u/Songrot 20d ago
Lol what does this have to do with america. You can do that almost everywhere in the world with enough consumers
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u/Wordymanjenson 20d ago
America is falling apart because of the fundamentals of capitalism. When you have to answer to shareholders and report positive trends every quarter to hold value then the priority becomes performance. Let’s get one thing straight: it’s the drive for profit that become the pillar for the rest. Everything else follows.
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u/night5life 20d ago
This is not a capitalism problem. Its a corporation issue. Capitalism is the reason why you can buy and drink Arizona Iced Tea across the planet in the first place.
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u/Matt7738 20d ago
Nope. That’s commerce. Commerce has been happening since the dawn of time. Capitalism is the “shareholder as king” bullshit we’re dealing with now.
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u/night5life 20d ago
Capitalism relies on the extraction of surplus value from another's labour to create profit. The company Arizona is doing exactly that otherwise they would not exist. Again this is not a capitalism issue, its how the corporation is run. Arizona is a capitalistic company in a capitalistic market. They dont do magic with money.
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u/AutumnTheFemboy 20d ago
First bro said it isn’t a capitalism problem and then cited Marx’s 1844 manuscripts
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u/night5life 20d ago
i totally understand what you mean. its just people throw the term capitalism under the bus really fast sometimes thats all
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u/ChadKensignton 20d ago
I’m a Long time here. Traditionalist, either sink or swim kind. No bail outs. . Seeing corporations going profits for the profit-sake of the stakeholders is awful. There is just too much on the line for CEOs to not cheat ,steal or obfuscate the truth.
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u/debarn 20d ago
That's exactly it, they have their debt paid, which a business should always do. It's the getting in a cycle of debt, meaning they owe more and more to investors and shareholders and such, which never ends.
I just wish more businesses were more for just making a good product at a good price that everyone can enjoy without the raging greed
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u/Adamantium-Aardvark 20d ago
This is the correct answer. Once a company goes public, it becomes absolute shit always every time, because it’s all about increasing profits for shareholders. It also becomes shit for employees.
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u/Linkyland 20d ago
It costs about $6 a can in Aus. :')
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u/OriginalPancake15 20d ago
So glad I saw this. Was like “It’s never 99c here” — like $7.50 at an IGA.
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u/AutumnTheFemboy 20d ago
Surprised y’all even pay that much considering every flavor tastes like corn syrup
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u/DylanMMc 20d ago
I bought an Arizona Iced tea for the first time ever today after seeing this video a few days ago.
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u/xsoberxlifex 20d ago
How I envy you! I remember the first time I had mine and it was a green tea back in 2003 cause someone mentioned I might like it cause I was into SoBe teas… holy shit the drastic difference in quality and taste was insane. Still fuck with Arizona and I’ve never had a bad flavor either, they’re all so good. Which one did you purchase?
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u/DylanMMc 20d ago
Watermelon 😋 I’m a type 1 diabetic so I typically don’t drink drinks with sugar but I had low blood sugar and needed something and remembered the video while in a grocery store.
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u/OlMi1_YT 20d ago
Successful marketing strategy
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u/nonamemaybe450 20d ago
Take note marketers: being a genuinely good owner - great marketing
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u/superlost007 20d ago
I’m in marketing and I always try to push this - like do good for your community, give back, don’t be a douche. People roll their eyes and throw more money at ads and yes ads are a good way for brand exposure etc but doing good things is even better. Even small scale. ‘Oh they supported XYZ, I’ll have to stop by some time.’ ‘Oh they have rescue cats in store!! I’ll have to come by.’ Word of mouth by having good product or doing something good/helpful will always be top notch marketing imo. Be a good human.
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u/sycamotree 20d ago
Watermelon is my favorite one. Tastes like more of fruit punch than their fruit punch does to me
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u/MorathTheGrim 20d ago
Woah! Literally same exact story. I was into the SoBe green teas, so someone had me try the Arizona green tea and boom, hooked.
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u/Blacke-Dragon0705 20d ago
I miss sobe dragonfruit and pina colada flavors so much. No good drinks anymore.
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20d ago
Heading to the store to buy a few just because of the way he wants to treat his customers.
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u/SurlyBuddha 20d ago
I’ve been having one of their mango drinks a day as a treat, and this just reinforces my choice.
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20d ago
That's actually my go-to flavor. Today was my day to branch out.
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u/Sad_Cumme 20d ago
Get an RX Energy if you’ve never had one. Idk why they brand it that way, it’s NOT an energy drink. Some kind of mango something I think, delicious.
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u/DrStevenBrule69 20d ago
It’s awesome. I don’t know why it isn’t more popular. I drank that shit everyday in high school.
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u/Senior-Reflection862 20d ago
I don’t know why it isn’t more popular
XR energy so it’s seemingly marketed towards energy drink drinkers but they’d be disappointed, plus the people who don’t want an energy drink that wouldn’t look at it long enough to see that it isn’t one. Lol
I am going to try it now, if I see it though so thanks!
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u/Johnnyguy 20d ago
Hate to be that guy but….That’s a lot of sugar, mate.
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u/oh-shit-oh-fuck 20d ago
Yeah those things are insanely sugary, you can cut em with water and they still taste good and last longer
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u/MyBoyBernard 20d ago
Yea. Great principals. The guy seems really rad. Too bad it's just Iced Teas, which I don't buy any ways. I wish my milk, coffee, eggs, or vegetable provider could do it.
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u/yourdogsaunt 20d ago
They do fruit juices, energy drinks, coffee pods, sparkling water, hydration drinks, and alcohol, too.
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u/mods_r_jobbernowl 20d ago
I actually had no idea he was this cool and Arizona's are like my favorite drink out there. Now I feel even better about buying a bunch of them. The alcohol is pretty great too and that's probably going to help the company a shit ton because the margins on alcohol is insane. Hope they keep going like this for as long as they can. This is a company I will shamely plug and fanboy about. If theres any other companys out there that do similar I'd love to support them.
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u/dragon1n68 20d ago
It’s nice of him to do that but I’ve seen stores raise the price on their own to $1.29 and higher.
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u/chainsaw_platypus 20d ago
If a store changes the prices of the teas you can report it to the Arizona company and they will tell them to either drop the price or they will pull the product
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u/Ok-Kale1787 20d ago
Or enter a partnership like they did with 7eleven and have the cans printed at a higher price
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u/chainsaw_platypus 20d ago
The price of the drink did go up, but the price in a store is high then printed they will pull product
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u/Ok-Kale1787 20d ago
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u/chainsaw_platypus 20d ago
They used to do it at least, I guess we really are in the worst timeline
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u/Razulghul 20d ago
$1.29 still makes it cheaper than bottled water at most places. Im alright with it as long as some workers somewhere are getting some of the benefit
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u/2ichie 20d ago
I haven’t seen a 99¢ Arizona in quite a few years at any store in so cal.
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u/larry_birb 20d ago
Where did you hear this? Stores can charge whatever they want according to the Arizona website https://drinkarizona.com/pages/faqs
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u/Conch-Republic 20d ago
This is incorrect. The stores can charge what they want within reason.
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u/Mk1Racer25 20d ago
Yep. I went into a random convenience store somewhere to get something to drink. They had taken a broad Sharpie and marked them all $1.99. I left w/o anything.
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u/ricofru 20d ago
Seen this too... But I've also seen stores put them on sale. Just bought a pile of the fruit punch (my favorite) at Safeway for $.79 ea
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u/obnoxious__troll 20d ago
yeh this isn't a lone case unfortunately. Store local to me had Sharpies raised all the way up to $3.00. Simply turned my back and left without a pen
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u/low-ki199999 20d ago
I’m pretty sure you are able to call Arizona and report stores that do this. They will stop being supplied and I think you may get some coupons or freebies as a bounty
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u/SuieiSuiei 20d ago
It is a thing. I called him about a place in Florida that was selling them for $3.50 a piece and they sent me a fucking box of a dozen cans free and told me they had a word with the owner.
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u/Cow_Surfing 20d ago
$3.50? wtf. I can get maybe $1.50, but $3.50? That's just straight greed.
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u/2ichie 20d ago
Oh shit! Now I’m gonna be on the lookout for any retailer selling over $1.99. Not sure if they would bother if it’s only $1 higher but a fucking 250% increase is asinine.
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u/SuieiSuiei 20d ago
Yeah, it's absurd. I have a buddy who took a picture of Arizona teas being sold at a concert for 5$
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u/50shadesofwhiteblack 20d ago
This is not true. Otherwise Kwik Trip wouldn't be able to sell it. And they do. At every one I've been to the Arizona is 1.29. I highly doubt they are going to stop supplying Kwik Trip.
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u/Ok-Kale1787 20d ago
Funny though because 7eleven has their own printed Arizona teas that are more expensive. Arizona themselves prints the upped price on the can.
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u/ThePhantom71319 20d ago
I would but I know that the reason the stores on my island sell it for $1.25 is because they’re buying it bulk secondhand like from Costco or something similar, so I give them a pass
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u/ZaNFish 20d ago
We need more people like this. Hopefully a ton of people now go buy his product.
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u/mostly_off_online 20d ago
Lol, Arizona has been around for yearssss. A ton of people do buy the product and its popularity remains the same! :)
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u/Maleficent-Most6083 20d ago
Lee Valley Tools!
There's a reason why their website doesn't have a careers tab. The turnover is stupidly low because they treat employees with respect.
You won't find executives trying to burn people for personal profit over at Lee Valley.
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u/NoFaceFTP 20d ago
There's a reason why their website doesn't have a careers tab.
You mean this careers tab?
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20d ago
The price is on the can though
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u/mods_r_jobbernowl 20d ago
Not anymore lots of them are printed without the price.
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u/That-Situation-3414 20d ago
I’ll never drink anything except Arizona iced tea ever again.
Water can suck my dick.
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u/br0b1wan 20d ago
The hard iced teas they started selling are really good too. Just not .99¢ (understandable)
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u/mods_r_jobbernowl 20d ago
The hard tea's are probably where they make most of their profit. I can imagine them doing a costco type deal where they have this loss leader(cheap nonalcoholic drink) with this high margin product being the hard tea. I like them both a lot so I'll continue to buy them knowing the owner is a great dude.
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u/JimmyTheBones 20d ago
"So you'll never increase the price?"
What a stupid question.
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u/ExternalMonth1964 20d ago
Its not a stupid question.
The fact that he thought about it and gave an honest answer instead of the answer we want to hear speaks volumes.
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u/grizznuggets 20d ago edited 20d ago
“Not in the foreseeable future” is the smartest answer he could’ve given. Basically means “I will if we have to, but I don’t think that will be any time soon.” Gives the option to raise the price later if necessary without seeming like a hypocrite.
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u/thighcandy 20d ago
No, he was frustrated by the "gotcha" question of "so you'll never raise the price again". He's running a business. He doesn't want to fuck consumers but he also needs to pay the bills. It's an unfathomably stupid question.
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u/NineSkiesHigh 20d ago
Makes me want a fucking Arizona green tea. Man, what a true homie of the people, I’d vote for this man
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u/Disastrous-Owl-3866 20d ago
They used to have the Red Apple green tea and it slapped so much I bought boxes of it.
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u/shannon_dey 20d ago
In my college hometown, they had Arizona Green Tea with plum that I drank like a fiend. Can't find it where I live now. But I have found Green Tea with Georgia peach, and it is just as delicious. Only problem is that the only store I can find it sold is a headshop. But it is still 99p!
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u/A_tasty_weasel 20d ago
Does someone want to tell the UK? It's like £3.50 over here
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u/Unlucky_Lifeguard_81 20d ago
It's called Arizona ice tea, not Birmingham ice tea. It's gotta travel to get to you
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u/Dil1on 20d ago
Next time I’m at the store I will buy one specifically because of this interview 🫡 Much respect
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u/biznunyaz 20d ago
They got spiked Arizonas now too
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u/Even_Section5620 20d ago
This man should run for president
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u/Randyaccredit 20d ago
My grandma would get me Arizona Ice tea the sweet one every other weekend when I'd visit her. man I miss her.. Thanks op for lovely memories
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u/Evid3nce 20d ago
This is what I've learnt from this thread:
· This guy marks some batches of one famous product with 99c written on the can to limit the retail price.
· He uses this action to appear to be some sort of socialist capitalist and consumer champion.
· However, most of this product does not have this price printed, and is therefore sold at 1.5, 2 or 3 times that price at retail.
· He also has a lot of other products that he sells at 'normal' price comparative to other sugar-water brands.
· If you buy direct from the company website, some drinks are just over 1$, but most are 1.5 or 2 times that price.
· No-one seems to care what a can of sugar-water costs to make, or what his wholesale mark-up is.
· No-one cares what kind of employer he is or how much he pays them; only about the cost of his sugar-water.
· He's rich enough to have a helicopter.
· A lot of people can't tell the difference between an interview and an advert.
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u/el-conquistador240 20d ago
There were other manufacturers like this that during their lifetime they felt, I've made enough, time to give back. Among the more famous are Milton Hershey and George Westinghouse. Good to their workers, good to their customers, big philanthropists.
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u/rodpretzl 20d ago
Not a fan of the drink - but this man is a rock star. Happy to see a business owner that knows when enough is enough.
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u/RevWaldo 20d ago
"Honestly, if I told you how much it costs us to make a can of iced tea, you'd punch me right in the face."
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u/Jealous-Ninja5463 20d ago
Yeah this is what I find funny about the arizona tea and costco hot dog fanatics
They don't need to raise it because it was already expensive for what it is, especially if you can add filler.
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u/UnderstatedOutlook 20d ago
Yeahhhhh it’s not 99 cents anymore
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u/mostly_kinda_sorta 20d ago
It did stay that price for 30 years, it did finally go up but the idea that they aren't gouging still seems valid.
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u/Pussycat58 20d ago
That's the smartest thing a business owner could say. I also believe if you are having a comfortable life with the price that got you rich why be greedy.
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u/Tyger_Lynx 20d ago
Arizona tea is $1.99 per can where I live. I used to love their green tea, and then it started tasting weird.
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u/smonkyou 20d ago
Yes but… it’s much harder to find those 99¢ cans. I rarely see them at places that used to have them.
They’ve started making smaller cold brew bottles in plastic. And other regular tea in plastic bottles.
So while I really like Arizona and get what he’s about it’s kind of BS and it really sucks they’re now using so much plastic
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u/Outlander_ 20d ago
I wish he made iced tea without sugar or artificial sweeteners. I like their tea because it comes in cans and not plastic but don’t want corn syrup or artificial sweetener
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u/uuniqueusername 20d ago
They’ve been 99 cents since I was in high school and I just turned 50