Subtitles section Play video Print subtitles You've stopped off at a service station to get yourself a cool, refreshing drink, but you can't help but notice that, while a 12-ounce bottle of soda costs a mere $1.49, the same-sized bottle of water costs about 50 cents more. You would think that soda should cost more because, in addition to water, it contains sugar, flavorings, and a number of mysterious chemicals, whereas water just contains... water! So, what's really going on here? If we look at production cost, the actual liquid really only accounts for a few cents of the price of each. Bottling and transportation cost a bit more, but the primary expense for both products is marketing. Beverage companies spend millions putting their drinks on signs, TVs, and in the hands of celebrities, all in an attempt to convince us to pay for either a product with serious health consequences or for one that comes out of your tap virtually for free. But the average person doesn't know or care about any of this. They're just looking for something to drink. And companies simply charge whatever we're willing to pay for it. 10 dollars for a bottle of water? Yeah, right! But 1.99? Eh, what the heck. It's good for you, right? Soda, on the other hand, suffers a far less favorable public opinion. We've caught on to the fact that it's an unhealthy, cheap beverage selection, and as a result, companies can't get away with charging us as much as they do for water. But lower that price to 1.49, and we'll take it. Essentially, it boils down to two very inexpensive products being sold at the highest price we are willing to pay for it. The real question is, when are we going to start buying bottled air? With the right logo, brand name, and marketing campaign, the sky's the limit!