Analysis of Micro Economics

What is microeconomics? In simple words, microeconomics is a study of what may happen when some individuals interested in a product will make choices in response to changes made by a company. Those changes might be prices, resources, or methods of production. Microeconomics is made of buyers, sellers, and business owners who by using money they put in and take out keep the economy of a given company going. They also create supply and demand which help develop new products (Team, 2022). 

With the brand we chose, it is quite simple to evaluate who is doing the most to keep the company’s economy going. Two Youtubers who are also owners of this beverage keep promoting their products on their social media platforms as well as doing sponsorships with organizations such as UFC. (About prime, 2022) Both owners have a huge audience who are mostly aged 14-20. This is the demographic who are spending most of their money on this product, not only to have it for themselves but also to resell it for a bigger price. The retail market for PRIME is enormous, people are willing to buy one bottle for 10-100 pounds. Therefore, customers won’t pay attention to the price increase in this product mostly because it is extremely hyped and owners try to come up with new variants of their products.

Owners revealed that in 2022 Prime hydration made $250 million in retail sales (Bhattacharya, 2023) and it was also said that they made $110 million in gross profit internally. Prime doesn’t stop surprising the world with their successes as only in January 2023 they made $45 million in sales. (DeAngelo, 2023).

References 

Team, T.I. (2022) Microeconomics definition, uses, and concepts, Investopedia. Investopedia. Available at: https://www.investopedia.com/terms/m/microeconomics.asp. 

About prime (no date) PRIME. Available at: https://drinkprime.uk/pages/about-prime. 

Bhattacharya, R."anarkiddie" (2023) How has prime hydration become so successful? understanding the origins of KSI and Logan Paul's venture, 

Sports news. Sportskeeda. Available at: https://www.sportskeeda.com/esports/how-prime-hydration-become-successful-understanding-origins-ksi-logan-paul-s-venture (Accessed: March 8, 2023). 

DeAngelo, D. (2023) Logan Paul reveals how much money prime sports drink has made, Game Rant. Available at: https://gamerant.com/logan-paul-how-much-money-prime-sports-drink-made/ (Accessed: March 8, 2023). 

(Oliwer Bule)