Monday, January 7, 2013

Dognomics: The Economies of Scale

With Annie's allergies, I've stood in the aisle of the pet store many times looking at all of the ingrediants debating if I should change foods.  The problem I always come down to is wishing the smaller bags were priced the same per pound as the larger bags.  And that's the short version of economies of scale.

I'm sure everyone who reads this realizes that dog food is typicaly cheeper when you buy it in the largest size possible.  The simple reason is it's usually cheeper for a company to sell in bulk and it's therefore cheeper for us to buy in bulk.  If you're looking at switching dog foods, you've typically mutters all sorts of things about the economies of scale either in your head or under your breath.

But it is what it is, buying a 45 lbs bag of dog food is cheeper than buying 13 lbs of dog food when you look at the price per pound. 

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