Monday, April 14, 2008

Bottled water is more expensive than gasoline...really

Poland Spring has been incentivising route delivery drivers to deliver more than the customer ordered for some time now. We have been complaining. We do not want a six month inventory of bottled water taking up space in the basement or garage, but despite our complaints, the deliveries kept coming with more than we had on our order.

Take a look at your bill for delivered bottled water. How much is a gallon of water? How much is a gallon of 89 octane? How much do you pay for a deposit on the plastic container? That is your money they are making interest on while you maintain inventory of their product in the basement.

Recently, a letter from Poland Spring informed customers that "in order to increase efficiency" they would be reducing the number of deliveries and increasing the amount of product delivered.

In order to be "more efficient" most businesses, and let us consider our households to be businesses when it comes to dealing with vendors , most businesses want to maintain just-in-time inventories. Vendors, of course, want to have customers maintain as much inventory as possible.

In the case of Poland Spring: They want to increase the customers inventory of exorbitantly priced product and charge rent for the dispenser and maintain a cash deposit for the inventoried containers.

People might be foolish enough to buy water, but greed will be the ruin of this cash cow.

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