Why the average price of drinks is important.

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Whythe average price of drinks is important.

Theaverage price of drinks is important, especially for restaurants,bars, and other drink outlets because it gives them a guide on how toset prices in their outlets. Although the nationwide average pricesfor drinks, both the soft drinks and beer, are readily available,business people and consumers of these drinks are mostly interestedin regional average prices. This is because prices for drinks mayhave a large range value (difference between the highest and thelowest prices), which gives a misleading average to the local drinkssellers. Regional averages are, therefore more important to investorsbecause they are computed using prices that differ slightly.

Dataabout the average price of drinks can be sourced from differentsources, including the public and private agencies. Online souring ofthe average prices is much easier, cheaper, and effective. Forexample, a private website known as the DrinkPrice.com analyze theprice of different drinks in all states in the United States andavail the data on its website in tabular format as shown in Table 1.This data can be accessed by anyone (including the sellers andconsumers) from any part of the world.

Table1: Average prices of drinks

Average price

Type of drink

Size

$ 3

Dom bear

Pint 16oz

$ 2

Dom bear

Bottle 12oz

$ 3

Mixed bev / liq

Glass

Sources:Drink Prices (1)

Table1 show that the average price varies with the type or brand of thedrink and the size of packaging.

Althoughthe private and public organizations serve as reliable sources ofdata on the average price of drinks, the raw data can be obtainedfrom the distributors and manufacturers. This would take long tocollect and process. However, this is the most reliable approach incase one wants to conduct an empirical study on the average price ofdifferent drinks.

Workscited

DrinkPrices. Drink prices: Search for cheap drinks.DrinkPrices.com. 2014. Web. October 23 2014.