Dec 4, 2016

are they fleecing the public for water?

is the Ein Gedi mineral water company (Kerur-Jafa Tabori and Kibbutz Ein Gedi) overcharging for their water? Maybe. Perhaps. According to Globes they are.

Globes analyzes their soaring profits and has come to the conclusion that Ein Gedi is sold for 2.5-3 times the production costs of the water.

I'll be very happy to hear that Ein Gedi lowers its prices because of the Globes article, but that is too specific for me.

Ein Gedi water is sold at the cheapest prices of all the various mineral water brands, as far as I have seen in the stores. A six-pack of 2 liter bottles of Ein Gedi water costs about 10.90nis  to the consumer. Aqua Nova isn't mineral water, so it does not count, even though it is cheaper. Neviot and Mei Eden are significantly more expensive costing closer to the 15nis range for a 6-pack, and those are 1.5 liter bottles instead of the 2 liter bottles sold by Ein Gedi. Other brands generally sell in the range of 12nis per 6-pack of 1.5 liter bottles.

So perhaps Ein Gedi is a bit overpriced and should bring their prices down, but why did Globes not compare their profits against the profits of the various other companies? Maybe the production costs are higher for the other companies or maybe not, but in such an article strongly implying that Ein Gedi is fleecing the public I would expect a comparison to the other, more expensive, brands.




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