In economics it is called “geographic price discrimination”. Buy a Pesek Zman candybar in the USA and you’ll pay NIS 2.70 ($0.69). Buy a Pesek Zman candybar in the UK and you will pay NIS 3.85 (65p). Buy the same candybar in Israel and you will pay anywhere from NIS 5.50 to NIS 6.29, dependingon the store.
Even retailers can’t get the price paid by the American consumer: Strauss-Elite sells the candybar to Israeli stores themselves at NIS 3.50. It refuses to say what the wholesale price is abroad. However, it appears to be much less. HaAretz interviewed the owner of a New Jersey store, Amira. He says that he is buying the Pesek Zman candy bars from a distributor and is still making a profit at his regular price of NIS 2.70($0.69).
The price discrimination came to light over the weekend when Yoav Rokach-Penn posted a photo of the Pesek Zman candybar on his facebook page. On the left side of the photo was Mega’s online shopping page for the candy bar; on the right was the store shelf at a Shoprite in New Jersey with the price clearly marked.
In response to the photo a group of mothers who had protested Strauss prices early last summer sent a letter of complaint to Strauss. The letter demanded that Strauss lower its prices immediately. Failing that the mothers planned to organize a boycott starting on March 1. Continue reading