Americans Could Pay $7 For A Gallon Of Milk If US Goes Off 'Dairy Cliff'

[Chan790]

9. On the mainland OTOH...

I once had a dairy manager for a supermarket tell me that they make almost no profit on organic or Lactaid or other non-standard dairy because people simply will not break $5 as a sort of mental barrier so they sell it at a reduced margin (I just checked, Lactaid in my local organic Kosher store is $4.69.) because otherwise it sits on the shelf until it goes on the "Dairyman's rack" (imminent expiry.) for half-price. You, in turn, pay more markup on items such as ice cream that people will buy at any price, to even out the profit margins.

It's like $4 gas. The number of Americans that say they would stop buying gas at $4 is about 20% higher than at $3.90.