Why is cereal so cheap?

More than 60% of brand name cereal purchases are made with a coupon. Because distributing, redeeming, and discounting for coupons is so expensive, cereal companies like General Mills are cutting back on the coupons. But consumers love them, so they will probably stick around for a long time to come.

Why has cereal become so expensive?

Cereal companies allow the stores in which their cereal is sold to set their price. Cereal is an expensive item. The stores continue to raise the prices because consumers continue to pay the price. Stores in the same city can have a $3 or more difference in the cost of the cereal.

What is a good price for cereal?

The cost of cereal will be anywhere between $2 and $6 per box….How much does a box of cereal cost?

Type of Cereal Price Range
Cheerios $3 to $5
Chex $3 to $5
Cinnamon Toast Crunch $4 to $6
Corn Flakes $3 to $5

Is cereal elastic or inelastic?

The price elasticity of demand for a particular breakfast cereal, though food, is highly elastic because of the availability of so many close substitutes.

What’s the most expensive cereal?

The Most Expensive Cereals on the Market

  • Nature’s Path Organic Crunchy Cereals — $33.
  • Cascadian Farm Organic Granola — $33.
  • Kashi Golean Hearty Oatmeal — $32.
  • Bear Naked Granola — $30.
  • Udi’s Granola — $29.

How much does it cost to make cereal?

After studying Kellogg and other cereal companies, Ghez has devised a general cost formula for an average box of cereal, basing her percentage calculations on the cereal’s wholesale price of $1.73. According to Ghez’s formula, the raw materials for corn flakes cost Kellogg about 14 cents (8% of the wholesale price).

What cereal is healthy?

The 15 Healthiest Cereals You Can Eat

  1. Oats. Oats are a nutritious cereal choice.
  2. DIY Muesli. Muesli is both a healthy and delicious type of cereal.
  3. Homemade Granola.
  4. DIY Cinnamon Crunch Cereal.
  5. Kashi 7 Whole Grain Nuggets.
  6. Post Foods Grape Nuts.
  7. Bob’s Red Mill Paleo-Style Muesli.
  8. Ezekiel 4:9 Sprouted Grain Cereals.

Which cereal is the most economical?

Oatmeal is the most economical choice, so I’m glad my family likes it.

What is the price elasticity of demand for cereal?

Items that people are willing to buy even when prices increase are said to be demand inelastic. Overall, the demand for breakfast cereal is demand inelastic, because in western societies, cereal is simply something we eat for breakfast.

Is high elasticity good or bad?

If demand for a good is elastic (the price elasticity of demand is greater than 1), an increase in price reduces total revenue. In this case, the quantity effect is stronger than the price effect. demand is less than 1), a higher price increases total revenue.

What is the number 1 selling cereal?

1. Cheerios. America’s favorite cereal by both revenue and boxes sold is Cheerios.

What was first cereal?

The First Breakfast Cereal, Granula, Had to Be Soaked Before Being Eaten. Granula wasn’t much like the cereal we eat today. The first manufactured breakfast cereal, it was developed in 1863 by a doctor and health reformer named James Caleb Jackson.

Why do breakfast cereals cost so much money?

Following are possible reasons why breakfast cereals costs so much: Compensation for a decrease in volumes. The demand for cereals has been dwindling in the recent past, which means fewer cereals have been sold. You might have also noticed the trend whereby people are consuming lesser milk and fewer carbohydrates for health reasons or otherwise.

Which is the best cereal in the world?

1 GoldenVale (ALDI) 2 Kellogg’s Just Right 3 Sanitarium Weet-Bix 4 Kellogg’s Coco Pops 5 Kellogg’s Special K 6 Uncle Tobys Plus 7 Kellogg’s Corn Flakes 8 Kellogg’s Sultana Bran 9 Kellogg’s Nutri-Grain 10 Coles Corn Flakes

Which is the best breakfast cereal in Australia?

Sanitarium Weet-Bix Sanitarium is one of Australia’s most famous food companies and the brand behind the breakfast cereal with the malty flavour we all love – Weet-Bix. Packed full of whole grain wheats, the Weet-Bix range features a variety of healthy cereal blends, including:

What kind of cereal is Uncle Tobys plus?

Uncle Tobys is one of Australia’s original cereal makers circa 1861, first operating under the brand name Parsons Bros. Uncle Tobys Plus is a spin-off from the brand’s wide range of cereals, containing a blend of whole grain flakes and no artificial colours. Uncle Tobys Plus comes in several varieties, including: Uncle Tobys Plus Antioxidants