Thursday, August 12, 2010

Qandy Question

When is the last time you were in a grocery store (or anywhere for that matter)and thought, "Hmmm, I have a strong hankerin' for a tootsie roll."

How is that company still in business? Here are my ideas:

1. Halloween revenue lasts them all year
2. They have no marginal cost and extremely low operational cost. Think about it, same wrapper for years, the candy is always hard and have you ever seen one go bad? No expiration date. Their production could be a fixed cost in 1963 and they have a gigantic warehouse full of pre-made candies. The only operational cost is shipping.
3. Revenue is from royalties of hip-hop music ("Let me see your tootsie roll")
4. They may own other candy brands and have a broader product line than I know off.


  1. Good thoughts. I think the answer is a combination - Halloween bonanza, eternal shelf life, etc. (But I have a hankering now.)

  2. never thought about that, but tootsie roll is never my first choice.

  3. tootsie rolls are one of my first choices...but i never buy them in the store...i only eat them at your observations are pretty right on...although one year aspen grove -each night i pulled out at least 50 tootsie roll wrappers from Hayley's pants pockets...

  4. This may only help their revenue a smidge, but I know that a tootsie roll is a lower-cal way for dieters to get their "chocolate" fix...