Subway price variation

February 18th, 2008 | 5 Comments | Posted in Kalgoorlie

Strolling through Melbourne today, I called in at Subway in Elizabeth Street for lunch on the go.

I ordered my usual six-inch tuna sub and nearly fell over when I saw the price was just $3.95.

In Kalgoorlie the cost is $5.45. Why the 28 percent difference?

Looking at possible variables, volume is probably higher in Melbourne (but staff can be employed to match turnover).

Food costs are cheaper (and fresher) in Melbourne, but rent is probably much dearer than Kalgoorlie.

Overall, I can’t see any justification for such a big difference in prices. Maybe it’s got more to do with the level of competition?

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5 Responses to “Subway price variation”

Michael Says:
February 19th, 2008 at 11:39 am
The six-inch tuna sub was $4.45 at Melbourne Central, reporting here on Subway pricewatch.
Mervan Says:
April 8th, 2008 at 1:10 am
Buisnesses in Kalgoorlie and other remote regional centres have to deal with high freight costs and high wages costs.
Michael Says:
April 12th, 2008 at 5:32 pm
That’s true Mervan, but the rent in downtown Melbourne would be just a tad dearer than Kalgoorlie.
john Says:
April 25th, 2008 at 11:55 pm
tuna is 4.45.
freight theres a 20-30% increase in freight to rural locations plus wages are higher FYI.
Michael Says:
June 3rd, 2008 at 1:41 pm
$3.95 at Moe in country Victoria.

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