Volume discounts don't always make sense. Charging a higher per-unit cost in a larger pack size contradicts the traditional cost plus pricing model but offers vendors a great way to increase profits.
With traditional cost plus pricing volume discounts are generally assumed. There is an established pattern of "the more you spend, the more you save" and we assume that the larger… http://www.beyondcostpluspricing.com/blog/volume-premiums/
Hotels employ some advanced techniques when pricing in-room internet access - but are they being too greedy?
It is easy to dismiss the prices some hotels charge for in-room internet access as simply being too high but there are actually a number of advanced pricing strategies being… http://www.beyondcostpluspricing.com/blog/room-internet-access-hotels/
A movie theater showcases many advanced pricing strategies including pricing that accounts for the diminishing marginal utility of popcorn and entices us to buy more than we could ever enjoy.
Movie theatres employ some very sophisticated strategies when pricing their snacks. Sure - they are expensive - but there are some very advanced strategies at work and a new… http://www.beyondcostpluspricing.com/blog/working/