eggs and bars

This Easter season, many are those who compare the price of eggs with that of chocolate bars. Some publications even try to sabotage the sale of Easter eggs, asking consumers not to buy them because they are exorbitantly priced.

Eggs are actually 3-4 times more expensive than bars.

Let's understand the main reasons:

1) The costs of the eggs are taller:

• Egg production process is more elaborate
• Egg packaging is more expensive
• Eggs are more fragile and break more easily
• Increased need for manual labor on the egg
• Egg is a seasonal product, losing value after Easter, requiring peaks in operation (which costs more)
• The cost of transporting the egg is higher (eggs take up much more space in the vehicle and require more care due to their fragility)
• Egg storage cost is higher (for the same reason)

2) The market is predisposed to pay more for the egg

• Brazilian consumers buy eggs at Easter, even though they are more expensive, as it is a tradition in Brazil
• The price elasticity of the Easter egg is very low.

Although I don't have exact information about how many % the cost of the egg is greater than the cost of the chocolate bar, the egg certainly has a higher cost. And the logistical cost is one of the main reasons for this difference. But certainly the higher cost does not justify all the difference between the price of an egg and a bar.

This is because what really rules in this case is the law of the market. The Brazilian consumer is willing to pay more for the egg, which is why it has a high price. The price elasticity of the Easter egg is very low. That is, few people give up buying eggs, even with price increases.

In summary, it is like this: the logistics of the egg is much more expensive than the bar, but the big price difference exists because, in the end, we go to the market and pay the price of the egg, even though it is more expensive.

Happy Easter for everyone!