RE: [at-l] No Bud for the Owen's

[Rick Bombaci <rpb@eoni.com>]

At 11:20 AM 2/21/00 -0500, bullard@northnet.org wrote:

>I have to agree that NY's bottle bill drastically reduced the amount of
>trash but there is one thing that has always puzzled me about how the
>system works and that is the economics of it. When I buy a bottle of soda I
>pay a $.05 deposit and when I return the bottle they give me the nickle
>back. So, with an even exchange, how do bottle return centers make any
>money? I'm not a retailer but I do know that if I don't pay less for my
>product than I sell it for, I won't be able to pay the rent, much less make
>any money. Is there an element of the system that is invisible to me (the
>consumer) that makes this a viable business?
>
>Saunterer

I think it comes out of the retailer's bottom line, which is why some
retailers won't accept bottles for certain beverages.  They incur the added
labor and shelf space expense of handling the returns.  Since all retailers
get hit (maybe or maybe not) more or less evenly, the hit to the bottom
line occurs across the board, and has little effect on relative
competitiveness among retailers.  That's my speculative guess, anyway.  And
it probably results in higher prices to the consumer to help retailers
recover that added labor expense.

R.
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