[bombcar]

This is exactly it. Companies will actually go quite into the red on particular products to avoid a price increase "before everyone else" if they can survive else wise.

There cannot be anyway Arizona Ice Tea is making the same profit today on their .99 cans that they were in 1992.

And at some point that has to break unless they become a charity subsidizing aluminum-clad tea.

When "the break" happens they almost always overshoot; it's easier to offer a 'discount' later if necessary.

[jakub_g]

Specifically about Arizona, this is super interesting:

https://www.latimes.com/business/story/2022-04-12/az-iced-te...

Long story short: they reduce costs (thinner cans, no need for heavy marketing because fixed price is the marketing) and aren't greedy, playing the long game.