Sure, you can get some decent deals at 7-Eleven, but overall, the prices are really high! Why would anyone pay that much?
There are some reasons why people think 7-Eleven’s prices are so expensive. They’re actually not that hard to understand if you know where to look. If you do your research first, then you won’t be paying extra just because you didn’t know where to look! Keep reading to learn of 7-Eleven’s high prices!
Why Is 711 So Expensive?
Why is 711 so expensive you may ask? How many times have you pulled into a 7-Eleven for a quick snack and walked out with over $10?
Maybe it’s happened because of those $1 Big Gulps. Or maybe it’s happened because you forgot that candy bar costs more than a dollar too. Well, believe it or not, there are reasons behind all these extra charges. The next time you shop at 7-Eleven, be aware of these five things that drive up prices. You might just save yourself some money!
Marketing Costs
In 2007, 7-Eleven spent $223 million in marketing, which is a lot of money to put behind advertising. However, it’s important to remember that marketing costs a lot of money because you’re trying to reach as many customers as possible, and reaching more people means spending more on advertising.
Also keep in mind that you can’t rely solely on print ads and radio commercials to get your point across; these are effective ways of getting information out there, but an effective business needs to focus on social media, email marketing campaigns and all sorts of other avenues if it wants its customers to get word of its products.
But remember: It’s also important not only how much you spend on advertising but how you spend it. You should always be looking for new and innovative ways to get your name out there.
If you’re not doing everything you can do to promote yourself, then someone else will, and they might take away some of your market share. Even though they have higher prices than most convenience stores, they make up for it by having great deals that appeal to their customer base.
Machine Maintenance
7-Eleven offers a number of vending machines inside their stores, which allow them to offer products that they might not otherwise be able to sell. By adding these products, 7-Eleven can gain a competitive advantage in local markets and provide their customers with more options. These vending machines do require some maintenance and often need repairs or replacements. The cost of maintaining and replacing these vending machines can be a significant portion of 7-Eleven’s operating expenses for many stores. In order to reduce costs, it may make sense for 7-Eleven to reduce their number of locations or even shut down some stores entirely. This could have an impact on their ability to compete in certain markets and would likely lead to job losses within 7-Eleven as well.
Convenience
The reason 711 is a bit expensive is because of the convenience it offers; customers are willing to pay more for fresh produce, hot food and on-the-go drinks. Convenience stores that sell these goods need to pay their suppliers more for those items, so they pass those higher costs onto their customers.
You can also find ATMs in 7 Eleven that can be really convenient for the customers. If you need to get cash on a Saturday night, when most banks are closed, then 711 is your best bet.
Open 24/7
Unlike other stores, 711 operate 24 hours and it is very convenient. It takes almost no time for you to run into a store for little items like a cup of coffee or some snacks. The store is also very convenient when it comes to having products in stock because there is always someone on duty. This means that if you need something that isn’t available yet, it can be brought from a nearby location and will only take minutes before being ready. As you can see, this is a lot of convenience for the customers, hence the higher prices of 7 eleven.
Rental
7 Eleven has so many stores that it has to pay a lot more for rent, which contributes to its higher prices. The company’s strategy, after all, has been to continue expanding rapidly in an effort to corner as much of the convenience store market as possible—and with close to 70,000 stores worldwide (including roughly 18,000 in North America), it already commands a hefty share. The other contributors to higher prices at 7 Eleven are simple: higher sales volume = more money spent on inventory = higher costs. And while some of that cost is offset by lower employee wages, customers are often willing to pay more for convenience—so it’s not as if low prices would necessarily attract many more customers anyway.
Is 711 expensive for all products?
Yes, 7-Eleven is quite expensive. There are however, some products that are cheaper to purchase there than they would be at your local grocer. For example, milk is generally cheaper at 711. And water. And…well, okay, not everything is cheaper at 711. Still, it’s a good idea to price check there before you hit up Costco or WalMart on groceries!
Conclusion
While convenience is a huge factor, it doesn’t completely explain why a gallon of milk is $7 and a six pack of water is $3. 711 has to pay for operating 24/7, and as such are among some of America’s most expensive stores. They’re also heavily taxed because they sell non-food items in addition to food items, so that adds to their cost. While we may not all enjoy paying more at these stores, there really isn’t anything we can do about it other than cut down on trips — unless you like saving on gas and stop by your neighborhood 711 less often!
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