Posted on 01/31/2018 9:28:52 PM PST by Excuse_My_Bellicosity
Ahmed Mohamed’s shop in the farthest reaches of West Seattle is so small you can easily miss it. But he’s nevertheless Ground Zero for Seattle’s latest economic experiment.
“Here is the precious fluid,” Mohamed laughs, showing me around the store.
He holds up a two-liter plastic bottle of Coke.
He once sold it for $2.79. Now it is $4 — a 43 percent increase, due to the city’s new tax on sugary beverages that went into effect Jan. 1.
“The customer — they look at the price and then they don’t even talk to you,” Mohamed said. “They just walk away.”
The reason is that a couple hundred feet away, and around the corner of Southwest Roxbury Street, sits a Bartell Drugs. It’s just 15 feet outside the city limits. And spelled out on its main marquee is one source of Mohamed’s problem: “GET YOUR DRINKS HERE,” it reads. “NO SUGAR TAX.”
Customers, including immigrant kids who don’t yet speak much English, all seem familiar with White Center’s new dividing line, Mohamed said.
“It’s near impossible for me to sell this now. They go over there, one block away, and there’s no tax.”
Mohamed said he, too, sees both sides: the health case for taxing soda more, and the business argument that it could harm small markets in the city. He predicts he’ll survive either way, as sugary drinks are a small slice of his sales.
But what’s interesting about his story is that it shows how incredibly price sensitive people appear to be. And also, how White Center may be an example of what economists call a “border effect” — a market distortion when there’s a price disparity across a boundary that customers can easily cross.
(Excerpt) Read more at seattletimes.com ...
“But what’s interesting about his story is that it shows how incredibly price sensitive people appear to be.”
“Hmm - $4 or $2.79? Oh - Except Frank wanted one too - $8 vs. $5.60?”
Any Walmart sells 2 litre Coke for $1.
I have no idea what the price of soda is at our local grocery store (Seattle suburbs). But the idea of being “incredibly price sensitive” when one can go across the street and save $1.30 shows the writer’s, and the city’s ignorance.
Our nearest Walmart is about 25 minutes away on the highway, so going there to save $1.30 isn’t worth it. Although when I do get up that way I stop in and stock up on some things.
Seattle also put a tax on ammo a few years ago - 5 cents per ROUND!!! However, the Sportsman’s Warehouse in South Seattle still has the largest selection and decent prices. And they now always have the ammo on sale at 10% off to account for the tax. (Probably just a ploy to make me feel better!)
Any Walmarts in Seattle?
“He holds up a two-liter plastic bottle of Coke.
He once sold it for $2.79. Now it is $4 — a 43 percent increase”
A 2 liter bottle coke is $ 1.28 at WallyWorld. And that is the everyday price.
“But what’s interesting about his story is that it shows how incredibly price sensitive people appear to be.”
It could be that people are doing it as much out of spite as for economic reasons. Good for them.
Only a liberal would be surprised at people's "sensitivity" to a 43% markup. But what the heck, the important thing is that the city council feels good about themselves.
Ha - reminds me of the time the old lady up at little store near our cabin was complaining to me about one of the locals.
“So she was complaining about my high prices - yelling at me for selling a 6 pack of coke for $8 when she could go into town just 20 miles away and get it for $3.50. So I took the six-pack from her and said - ‘Well, seeing as I’m not going to sell it to you now - you can just drive into town and save yourself some money!”
I do a big Walmart order a couple of times a month. Household stuff. TP, paper towels, dishwasher detergent, coffee creamer, coffee....whatever I can have shipped. They always show the price difference between if I had done pickup or have it shipped. The other day the difference was $1.40 more to have it shipped. It’s worth it to me to not have to go near a walmart. Lol
but...but... Walmart only sells stuff made in China
At least that seems to be what some FReepers think
Amazing! Of all the ma and pa and convenience stores in Seattle, who does the Seattle Time decide to make the protagonist of the story - Ahmed Mohamed!!! A quintessential American entrepreneur.
I wonder how long they searched to find him. Not that I have anything against Ahmed. It’s more about the liberal rag and how desirous they are to paint muslims as just everyday Americans.
Coca-Cola desde Mexico. La cosa auténtica. ¡Con azúcar!
The Seattle Costco stores have helpfully posted signs explaining the sugary drink tax — helpfully named by the City Council the “City of Seattle Sweetened Beverage Recovery Fee” — and informing shoppers which Costco stores in the area do not have to charge the fee.
A curious question: if soda pop is ordered over the internet, will the city track down the “City of Seattle Sweetened Beverage Recovery Fee” scofflaw merchants?
Inquiring minds would like to know.
The funny part is that Seattle thinks they are going to make millions of dollars off this tax. They claim it is about health but it is all about taxes for government.
So the new law is racist against Islamists? Then they have to file a discrimination suit...
Walmart sells everything other stores sell, and then some.
Walmart.com also sells everything amazon sells, and often for way lower prices
High fructose corn syrup is not good for you.
“High fructose corn syrup is not good for you.”
Neither is sticking your nose into other people’s business.
L
Notice the city council didn’t decide to tax coffee? Wise move. Yet consumers can sugar it up to their hearts content.
I had this job, where I worked swing shifts. And when working nights and you wanted a beverage you went out to the vending area and lo and behold The only drinks left in the machine were Diet, (early 80s) back when diet drinks had not really caught on as they did in the 90s. You still wanted that beverage so you purchased a diet drink, and that’s how I got on to drinking diet at that point in time. Now I just drink coffee. Black.
I’m assuming all the fuss is about “sugared” drinks. Does that include HFC sweeteners? Certainly not diet drinks. So, who is drinking sugar drinks? Is there a demographic that prefers sugary beverages over other options?
Bourbon and coke is best with one part 100 or 101 proof, mixed with 3 parts cola and 2 ice cubes. I can imagine the B&C drinkers might get a little miffed over the tax increase. Hypes like sweets from what I heard. Maybe its a ploy to get addicts to relocate.
Everybody else can drink diet. Or coffee. How about an increased tax on sugar or ANYTHING with sugar in it! Azucar no mas! Of course I jest. But what is the end game? Fast food tax increases... at el?
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