Potato Chips Cost More than Steak

I've noticed recently that the price of potato chips seems to be out of all proportion to reality. I rather enjoy potato chips. I recognize they aren't the healthiest snack and so I try to only enjoy in moderation. But, quite often the "savory" flavor of, say, a bag of sour cream and onion chips is exactly what I need.

Earlier this year, I noticed that potato chip bags were only 9 or 10 ounces, which seemed a lot smaller than I remember. A lot of companies are trying to be sneaky and offering less product for the same price, which is the same as raising the price on the previous packaging. For example, I noticed about a year ago that a pint of Haagen-Dazs is no longer a pint, but 14 ounces. And it's now like you can see a "now smaller!" label on the package.

I don't really know if potato chip bags are smaller now, but it's hard not to notice the price. A cursory examination at the store showed most had $4.29 stamped on them. Is a bag of chips worth $4.29? I dunno. By way of comparison, I'd probably say no.

At the store on Wednesday, I wanted to get a bag of Lays Sour Cream and Onion (to satisfy that craving). The store I went to had a BOGO offer: buy one bag of Lays at the regular price of $4.29, get one free. Works out to 50% off, basically, but the store is forcing you to buy two to get that deal.

I've recently realized that at these prices, potato chips cost more than steak. And, I'm not just talking cheap sirloin, either. I almost never buy steak (ribeye, strip or T-bone) unless it is on sale, and the sale prices we see are usually $4.99 a pound, so my observations are based on that price. Consider these comparisons, based on the "everyday low prices" (or, prices that did not seem to be a sale) I saw yesterday:

Lays: 10 ounces for $3.28, or $5.24 per pound ($0.328 per ounce)
Ruffles: 9 ounces for $3.99 or $7.09 per pound ($0.443 per ounce)

Ribeye @ $4.99 per pound: $0.312 per ounce

I don't know if Ruffles have $4.29 stamped on them like regular chips do, but using that number, Ruffles would be $7.62 per pound and Lays would be $6.84 per pound. That's crazy! How much does a bag of potatoes cost, anyway?

According to my research, the local Kohler's store has a 15 pound bag for $3.39, on sale this week for $2.50. Harmons has a 15 pound bag for $3.99, or $1.98 this week.

A 15 pound bag has a total of 240 ounces. At $2.50, that 15 pound bag costs a little more than 1 cent per ounce. At $1.98, it's obviously less than 1 cent per ounce. So, comparing that to the price for Lays, do we assume that the other 31 cents is the price of the cooking, seasoning, packaging, distribution, retail mark-up and marketing? I find that hard to swallow.

Why are chips so expensive? I've heard that cooking oils are getting pricier. That could be a factor. I also believe the purveyors of "premium" chips (often positioned as "exotic" or otherwise "healthy") are driving up the price of regular chips.

I realize that chips are often on sale and it is often possible to get a bag for about $2.50. My non-scientific observation is that Doritos tend to be cheaper (or on sale more often...I think the bag is bigger too), and Sun Chips are pricier.

And, finally, I don't have to buy chips, but this just seems nuts to me.