What’s the most you would pay for a bottle of water? Two dollars? Maybe $4 at a concert? How about $55?
Believe it or not, there is such a thing as a bottle of water that costs $55. Depending on the size, prices can range anywhere from $25 to as much as $75. Does it at least come with vitamins? The company claims to use a “nine step purification process that includes ozone, ultraviolet and microfiltration. The water inside, however, does receive more treatment than what’s inside an average $2 plastic bottle. Is the water treated differently than the bottled water you buy at the gas station?
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Take one look at the bottle itself — it can answer any of your questions about cost. Next, we’ll look at the costs behind bottled water. What about the “regular” plastic bottles of water you find in the store? Are they even worth $2?
Bottled water has become so popular that 41 billion gallons are consumed every year around the world. Many people consider it safe and convenient. On the other hand, some of us will barely blink an eye at picking up a few bottles of water from the same gas station. In July 2007, for instance, Pepsi admitted to filling bottles of Aquafina with public water, even though the packaging suggests the water comes from natural springs [source: Environmental Working Group]. Recent studies have concluded that bottled water is no safer than tap water, and the costs of producing the drink and its effect on the environment have caused some alarm [source: National Geographic News]. With the price of oil rising, we typically think of gasoline as very expensive. Here are the numbers: Over the past few years, however, many bottled water companies labeling their product as “purified” or “natural spring water” have confessed to filling their products with simple tap water.
A gallon of gas costs around $3. Water, life’s most necessary substance, costs about three times more than gasoline when it comes in a plastic bottle. If you wanted to fill up that same 15-gallon tank with bottled water, it would cost you $150 [source: National Geographic News]. If we assume a one-liter bottle of water from the store costs about $2.50, a gallon of the same bottled water should cost about $10. If you wanted to fill up a car’s 15-gallon tank with gasoline, it would cost you about $45.
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Tap water, on the other hand, costs a fraction of the price of bottled water. On average, a high-quality engagement ring can cost $3,000 to $4,000. The razor’s handle isn’t the expensive part — it’s the endless number of disposable razor heads that end up costing lots of money. The popcorn that costs $4 at the concession stand only costs the theater owners about 40 cents [source: Ars Technica]. And of course, the $3 candy behind the flashy glass counter top is about 75 cents in a grocery store or gas station. Since most of the profit from ticket sales goes back to the studios, the theaters need some way to make money and stay in business. Their advertising campaigns have solidified the image of diamonds and marriage in the public’s mind. If you’re eating out at a nice restaurant and want a bottle of wine, you might think about holding back until after the meal. Without these high markups, though, we wouldn’t be able to enjoy movies on the big screen — theaters wouldn’t be able to afford it. The same $2 you spend on a liter of bottled water will get you about 1,000 gallons of tap water [source: EPA]. Next, we’ll take a look at some of the other products on the market that seem to cost more than they’re worth. They generally cost as much (or more) than the handle itself, and they don’t last very long before becoming dull. Restaurants are notorious for setting their wine prices very high — as much as three to four times the retail price. People rarely sell diamonds back because they see them as family heirlooms. Diamonds are made from carbon, however, one of the most abundant elements on the planet.
People have been paying high markups on items like these for years. Sometimes, consumers don’t even realize that what they’re paying is far more than the purchase is worth. The $55 bottle of water isn’t likely to fall into this category anytime soon, though.
To learn more about bottled water and related topics, see the links on the next page.
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Owen, James.” National Geographic News. 26 Feb. 2006 http://news.nationalgeographic.com/news/2006/02/0224_060224_bottled_water.html
Wiles, Richard. “Bottled Water Costs More, for Us and the Environment.” Sun-Sentinel. 11 Aug. 2007 http://www.ewg.org/node/22394
“Drinking Water Costs & Federal Funding.” U.S. Environmental Protection Agency. 2004 http://www.epa.gov/safewater/sdwa/30th/factsheets/pdfs/fs_30ann_dwsrf_web.” All About Water. 2004 http://www.allaboutwater.org/tap-water.html
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Fisher, Ken. “A peek into movie theater economics.” Ars Technica. 5 Jan. 2005 http://arstechnica.com/news.ars/post/20060105-5905.html
“Most Expensive Wedding Dress.” The Most Expensive Journal. 3 (Related Homepag www.qualitydiamonds.co.uk/blog/loose-diamonds/the-3-biggest-mistakes-you-can-make-when-buying-diamonds-as-an-investment-and-how-to-avoid-them/) Sep. 2007 http://most-expensive.net/wedding-dress
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