Why DCL cost more

[ilovetexas]

what i was saying is that DCL's general pricing policy seems to assume a very low demand elasticity.
This may have been true in the past, but seems to be less true today.

so rather than massively discount in an attempt to fill the ship, if their price elasticity isn't as low as they think it is, a small change in the original price to the general public may result in improved sales (before discounting).

Oh no, oh no!! I hated price elasticity of demand calculations!

You are certainly correct, though. Demand is not Price Inelastic for DCL anymore and they would be better off to just realize that and price accordingly.

 

[tvguy]

The "shell and heart" are the same but the amenities are WAY different.

Yes, the amenities are different. According to the Wall Street Journal Toyota spends about $900 more producing a Lexus....and the sticker price is $11,000 higher. Although I am told a sharp car buying can get a lot more off sticker price at a Lexus dealer than you can at a Toyota dealer, so the real gap may be smaller.

 

[ilovetexas]

Mardi Gras doesn't have anything to do with it. It is the week of President's day that is always a very busy week(Mardi Gras always falls around that week). Schools up north are usually on a break either the week before or of PD. Disney knows mid Feb is always when northerners are due for a break in their weather too. Memorial Day week before and/or after is never nearly as busy as President's Day week. The Daytona500 always falls at that time to which seems to draw a huge crowd to Disney. The parks are loaded with Nascar clothing.

While the rest of that may be accurate, Mardi Gras most certainly has something to do with it as a LOT of Louisiana shuts down that entire week.

You state items as fact and then refuse to back them up. I'll take that to mean that they are not facts.

While I agree with you, it's common knowledge that wine has a CRAZY huge mark-up. Here's an article as well:

http://www.sfgate.com/business/article/Restaurant-markups-deconstructed-2370995.php

But, that whole thing about Disney getting Coke for free sounds like an urban legend to me. The Coca-Cola company is not going to give away its product to a huge company that can well afford to pay for it. I've seen NOTHING online to back up that claim (except for stuff on Disney discussion boards).

 

[Clotho]

But, that whole thing about Disney getting Coke for free sounds like an urban legend to me. The Coca-Cola company is not going to give away its product to a huge company that can well afford to pay for it. I've seen NOTHING online to back up that claim (except for stuff on Disney discussion boards).

They do actually get the product for free. But they have to pay for the cups (which I did not know about Disney but knew about movie theaters--it's why when you ask for an extra cup they won't give you one, because they are so strictly inventoried). This is apparently a common practice among soda dealers who want to eliminate competition in a given market (like a theme park), and want to require their logos be on the product when it goes out.
http://disneylies.com/legends/disneyland.html

"Legend: Because of the advertising value of having its products featured at Disney theme parks, Coca Cola provides Disneyland with all of its beverage products free of charge.

Behind the Legend: This is true, but highly misleading. For years, Coke has had an advantage over rival Pepsi because it provides its products free of charge to all of its customers. The company makes up the loss by requiring that beverages only be sold in official cups or containers -- and charging an enormous amount for those contains. The container charge is based on a sliding scale depending on the customer. Individual consumers, purchasing beverages at a grocery or convenience store, pay only a few cents for the can or bottle in which their beverage comes. At the other end of the scale, movie theaters and theme parks like Disneyland pay as much as $2.00 for a single drink cup, making the exorbitant prices charged for drinks at those locations completely understandable."

I wasn't not sharing links because they were untruths, but because it confounds me when people, who are sitting in front of a computer as they are typing, try to derail conversations or ideas by insisting on being handed proof on a platter. You have Google. Use it. If you find conflicting information, then join the conversation with some useful data to further the discussion. I made my statement based on my research, and I am not here to do your research for someone else. That said, if someone asks politely for further information in the spirit of genuine curiosity, I am happy to share resources and forward the overall discussion. That was clearly not the case.

Edited to add: oh and the reason why I knew about the markup on wines is because I worked in restaurants for 8 years--it was firsthand, real world experience. I didn't read it on a web page to learn that, so there was no "link" I had to share.

 

[ilovetexas]

They do actually get the product for free. But they have to pay for the cups (which I did not know about Disney but knew about movie theaters--it's why when you ask for an extra cup they won't give you one, because they are so strictly inventoried). This is apparently a common practice among soda dealers who want to eliminate competition in a given market (like a theme park), and want to require their logos be on the product when it goes out.
http://disneylies.com/legends/disneyland.html

"Legend: Because of the advertising value of having its products featured at Disney theme parks, Coca Cola provides Disneyland with all of its beverage products free of charge.

Behind the Legend: This is true, but highly misleading. For years, Coke has had an advantage over rival Pepsi because it provides its products free of charge to all of its customers. The company makes up the loss by requiring that beverages only be sold in official cups or containers -- and charging an enormous amount for those contains. The container charge is based on a sliding scale depending on the customer. Individual consumers, purchasing beverages at a grocery or convenience store, pay only a few cents for the can or bottle in which their beverage comes. At the other end of the scale, movie theaters and theme parks like Disneyland pay as much as $2.00 for a single drink cup, making the exorbitant prices charged for drinks at those locations completely understandable."

I wasn't not sharing links because they were untruths, but because it confounds me when people, who are sitting in front of a computer as they are typing, try to derail conversations or ideas by insisting on being handed proof on a platter. You have Google. Use it. If you find conflicting information, then join the conversation with some useful data to further the discussion. I made my statement based on my research, and I am not here to do your research for someone else. That said, if someone asks politely for further information in the spirit of genuine curiosity, I am happy to share resources and forward the overall discussion. That was clearly not the case.

Edited to add: oh and the reason why I knew about the markup on wines is because I worked in restaurants for 8 years--it was firsthand, real world experience. I didn't read it on a web page to learn that, so there was no "link" I had to share.

You're being awfully defensive for some reason. I found the wine link to appease the other poster and as it turns out, Coke doesn't give their product away for free. That's like saying that surgery is free but you have to pay $250,000 for the anesthesia; which is required. Plus, I obviously DID use Google or else I wouldn't have been able to say that I'd seen nothing online to back up the claim that wasn't on a Disney board; nor would I have been able to post the wine link for the other person who was asking about it.

 

[sissy_ib]

They do actually get the product for free. But they have to pay for the cups (which I did not know about Disney but knew about movie theaters--it's why when you ask for an extra cup they won't give you one, because they are so strictly inventoried). This is apparently a common practice among soda dealers who want to eliminate competition in a given market (like a theme park), and want to require their logos be on the product when it goes out.
http://disneylies.com/legends/disneyland.html

"Legend: Because of the advertising value of having its products featured at Disney theme parks, Coca Cola provides Disneyland with all of its beverage products free of charge.

Behind the Legend: This is true, but highly misleading. For years, Coke has had an advantage over rival Pepsi because it provides its products free of charge to all of its customers. The company makes up the loss by requiring that beverages only be sold in official cups or containers -- and charging an enormous amount for those contains. The container charge is based on a sliding scale depending on the customer. Individual consumers, purchasing beverages at a grocery or convenience store, pay only a few cents for the can or bottle in which their beverage comes. At the other end of the scale, movie theaters and theme parks like Disneyland pay as much as $2.00 for a single drink cup, making the exorbitant prices charged for drinks at those locations completely understandable."

I wasn't not sharing links because they were untruths, but because it confounds me when people, who are sitting in front of a computer as they are typing, try to derail conversations or ideas by insisting on being handed proof on a platter. You have Google. Use it. If you find conflicting information, then join the conversation with some useful data to further the discussion. I made my statement based on my research, and I am not here to do your research for someone else. That said, if someone asks politely for further information in the spirit of genuine curiosity, I am happy to share resources and forward the overall discussion. That was clearly not the case.

Edited to add: oh and the reason why I knew about the markup on wines is because I worked in restaurants for 8 years--it was firsthand, real world experience. I didn't read it on a web page to learn that, so there was no "link" I had to share.

I would like to see an official source on that beyond an urban legend website before I believe it.

In fact the one below that about Mickey Mouse is not true at all.

ETA: did you keep reading that page at all? Some creative licence went in to it, to say the least.

The wine thing I am with you on. Anyone who has ordered an alcoholic beverage knows there is a huge mark up.

ETA2: Quote from the small print at the bottom of that webpage.

All information on this site is, to the best of our knowledge, false. If any significant true information slips through, we apologize for that. Since we don't check any of what passes for facts around here, mistakes are bound to happen.

 

[ilovetexas]

I would like to see an official source on that beyond an urban legend website before I believe it.

In fact the one below that about Mickey Mouse is not true at all. ETA: did you keep reading that page at all? Some creative licence went in to it, to say the least.

The wine thing I am with you on. Anyone who has ordered an alcoholic beverage knows there is a huge mark up.

ETA2: Quote from the small print at the bottom of that webpage.

I especially like this one:

The Legend: All of the plush animals sold at Disneyland are stuffed with clothing taken from third-world children.

Behind the Legend: Disneyland plush is stuffed with puppy hair, leaving the puppies cold and bald but alive. Toys are, however, assembled by third-world children.

 

[TXDCLfan]

Yes, the amenities are different. According to the Wall Street Journal Toyota spends about $900 more producing a Lexus....and the sticker price is $11,000 higher. Although I am told a sharp car buying can get a lot more off sticker price at a Lexus dealer than you can at a Toyota dealer, so the real gap may be smaller.

I just started negotiations on a new F150 4X4 that "sticker-ed" at $41,679 and the first offer from the dealer was $36,483 for a difference of $5196. Bottom line is that "sticker" price means nothing these days when buying a new car/truck.

 

[Itinkso]

I worked for a school district that had contracts with Coke and then Pepsi. No charge for the syrups and soda water used in the dispensers but charges for all cups. The cups were kept under lock and key while the dispensing machine was available to coaches etc. during downtime. Concession workers would bring in their own cups to use while running the concession so as not to use a branded cup. Not really sure of the pricing of the cups because Coke and Pepsi gave price breaks to schools.
When Coke brokered the deal with Disney, Arrowhead water which had a major contract with Disney was out and Dasani came in. My brother is in management with Arrowhead and being bumped out of the Disney contract was a huge loss for them. (Didn't have to google !)

 

[sissy_ib]

I especially like this one:

The Legend: All of the plush animals sold at Disneyland are stuffed with clothing taken from third-world children.

Behind the Legend: Disneyland plush is stuffed with puppy hair, leaving the puppies cold and bald but alive. Toys are, however, assembled by third-world children.

I hadn't even gotten that far when I posted. I think I like the first one about Tom Sawyer island the best.

 

[sissy_ib]

I worked for a school district that had contracts with Coke and then Pepsi. No charge for the syrups and soda water used in the dispensers but charges for all cups. The cups were kept under lock and key while the dispensing machine was available to coaches etc. during downtime. Concession workers would bring in their own cups to use while running the concession so as not to use a branded cup. Not really sure of the pricing of the cups because Coke and Pepsi gave price breaks to schools.
When Coke brokered the deal with Disney, Arrowhead water which had a major contract with Disney was out and Dasani came in. My brother is in management with Arrowhead and being bumped out of the Disney contract was a huge loss for them. (Didn't have to google !)

When I was in the Air Force we would volunteer to run concessions at different events at the stadiums in town. At the end of each night we had to count every cup, cup carrier, popcorn bucket, ice cream cone and several kinds of trays.

Clearly if DCL is paying for the cups they don't care how much they cost as no one keeps track of them and you have to get a new one each time. My guess is they are not paying anywhere near the prices other places are. It is pretty well known that the most expensive part of a soda from anywhere is the cup and or even the ice.

 

[Disney 24/7]

As I was getting back on board the Magic after spending the day in Canada, we had Snow White greeting everyone on board after the security check in. That was totally unexpected and a wonderful surprise. Only Disney can bring out the kid in all of us.

 

[ilovetexas]

I hadn't even gotten that far when I posted. I think I like the first one about Tom Sawyer island the best.

re: international industrial espionage agent; he didn't fall, he was pushed

I'm not sure why someone quoted this website as a serious reference but it's hysterical and I'm having a great deal of fun reading it.

 

[tvguy]

I just started negotiations on a new F150 4X4 that "sticker-ed" at $41,679 and the first offer from the dealer was $36,483 for a difference of $5196. Bottom line is that "sticker" price means nothing these days when buying a new car/truck.

You are correct.

 

[jjgarv]

As I was getting back on board the Magic after spending the day in Canada, we had Snow White greeting everyone on board after the security check in. That was totally unexpected and a wonderful surprise. Only Disney can bring out the kid in all of us.

Exactly. This. So fabulous!

 

[Itinkso]

Clearly if DCL is paying for the cups they don't care how much they cost as no one keeps track of them and you have to get a new one each time. My guess is they are not paying anywhere near the prices other places are. It is pretty well known that the most expensive part of a soda from anywhere is the cup and or even the ice.

They probably aren't paying much especially when they hand out free iced water in branded cups at all the quick service counters in the parks. The major part of the Coke/Disney contract was that Coke could use Disney Characters and Products in their advertising.

 

[jdb in AZ]

The Disney name has value for many people, value they are willing to pay extra for. There are other cruises that offer nearly the same thing for less.

It is amazing to me how many random weeks school kids get off these days. When I was a kid, we got 2 weeks at Christmas and 1 week at Easter. Now in many parts of the country they get a fall break (or Jersey week, good lord why that isn't done the week before school I don't know) 3 weeks at Christmas, a week for Presidents Day, and Easter Week.

My grand kids get more time off school than I did, but they start school in early August, so the total number of school days is the same. The rationale is that students who get three months off during the summer won't remember as much as the admin would like, so they have to spend the first month reviewing. So now they're shortening the summer break by offering more breaks throughout the school year.

 

[sissy_ib]

My grand kids get more time off school than I did, but they start school in early August, so the total number of school days is the same. The rationale is that students who get three months off during the summer won't remember as much as the admin would like, so they have to spend the first month reviewing. So now they're shortening the summer break by offering more breaks throughout the school year.

When I was in elementary school we had year round school. Three months on, one month off. There were 4 different "tracks" so someone was always in school.

 

[Ccann]

I am sorry if I repeat anything that was already said.
But DCL or any product can be and is priced based on Supply and Demand.

Of course there is a trend in the prices, over any kind of Holiday vacation destinations prices peak(just like gas prices). Its not only for the kids but adults planning their holiday pay and vacation pay. I know we look at the holidays my husband has off and try to squeeze a few more days or have a few extra days incase of emergency. My children are young so school isn't a big driving force right now but will be in a couple of years.

We are going on Fantasy Dec 2013, I looked at doing it over Christmas then saw the first week of Dec almost 2000 dollars cheaper... I went for less demand and more savings.

DCL will always be more expensive compared to others just because of the service and the EXTRAS. But I think the trend/pricing is there for anything in demand. Prices go down to intise people to want it (demand).

There are a lot of different school schedules, just Here in the 20 mile radius I know of 3 different high schools with different spring breaks, but all with the same prom so yes in a way school is a factor because of Holidays and jobs play apart too. (school teachers have the entire summer off) I have the entire winter off! ) Thanksgiving, Christmas, 4th of July all higher priced vacation. 3 major Holidays for the US..the week before and the week of prices are higher.

 

[Topper]

That said, if someone asks politely for further information in the spirit of genuine curiosity, I am happy to share resources and forward the overall discussion. That was clearly not the case.

I guess "link please" is somehow rude on the planet Clotho.