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Discounting Candy To Account For Diminishing Marginal Utility

Another example that illustrates how the intersection of perishability and diminishing marginal utility determines discounting.
  Another example that illustrates how the intersection of perishability and diminishing marginal utility determines discounting.   In the photograph above you see that the… http://beyondcostplus.com/blog/discounting-candy-account-diminishing-marginal-utility/

Pricing For The Diminishing Marginal Utility Of BBQ

The menu from this BBQ restaurant shows they understand the diminishing marginal utility of their product and price to get customers to buy more anyway.
  The menu from this BBQ restaurant shows they understand the diminishing marginal utility of their product and price to get customers to buy more anyway.   The menu shows… http://beyondcostplus.com/blog/pricing-diminishing-marginal-utility-bbq/

The Diminishing Marginal Utility Of Draft Beer

Draft beer is highly perishable and offers diminishing marginal utility – a combination that makes discounting larger servings a profitable approach.
  Draft beer is highly perishable and offers diminishing marginal utility – a combination that makes discounting larger servings a profitable approach.   Draft beer is… http://beyondcostplus.com/blog/diminishing-marginal-utility-draft-beer/

Pricing Attraction Tickets and Bundles

Attractions are a highly perishable product and operators are keen on revenue management – combining bundles and hurdles in an effort to maximize revenue.
  Attractions are a highly perishable product and operators are keen on revenue management – combining bundles and hurdles in an effort to maximize revenue.   Imagine you… http://beyondcostplus.com/blog/multiple-discounts-attraction-tickets/

Diminishing Marginal Utility, Anchor Pricing & Attraction Tickets

The historic ships in Baltimore, open to tourists, recognize that they offer diminishing marginal utility and price accordingly.
  The historic ships in Baltimore, open to tourists, recognize that they offer diminishing marginal utility and price accordingly.   A quick look at the prices below shows… http://beyondcostplus.com/blog/diminishing-marginal-utility-anchor-pricing-attraction-tickets/

Small Price Difference, Relatively Large Performance Difference

Different buyers mean different approaches, and price-sensitive customers need to be handled differently when pricing premium versions.
Related Material   Different buyers mean different approaches, and price-sensitive customers need to be handled differently when pricing premium versions.   Last week a post… http://beyondcostplus.com/blog/small-price-difference-relatively-large-performance-difference/

Adjusting Prices For Diminishing Marginal Utility

Recent examples of smart vendors understanding (and accepting) the nature of their products and discounting to offset their diminishing marginal utility.
Related Material   Recent examples of smart vendors understanding (and accepting) the nature of their products and discounting to offset their diminishing marginal utility.… http://beyondcostplus.com/blog/adjusting-prices-diminishing-marginal-utility/

Gogo In-Flight Internet Pricing

The very effective pricing on Delta/Gogo in-flight internet access made me spend almost three times what I intended and feel great about it.
The very effective pricing on Delta/Gogo in-flight internet access made me spend almost three times what I intended and feel great about it.   Like many people I actually… http://beyondcostplus.com/blog/gogo-flight-internet-pricing/

Volume Premiums - More Isn't Always Less

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://beyondcostplus.com/blog/volume-premiums/

Volume Premiums

Not every volume buyer is only interested in the total volume. Smart pricing recognizes what each type of buyer values and adjusts accordingly.
Volume Premiums Not every volume buyer is only interested in the total volume. Smart pricing recognizes what each type of buyer values and adjusts accordingly. In traditional cost… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/volume-premiums/

The Diminishing Marginal Utility of Popcorn

Movies theatre popcorn pricing employs some very sophisticated strategies that are worth looking at.
Pricing For the Diminishing Marginal Utility of Movie Theater Popcorn As you can see there are significant volume discounts. The smallest size is $5.69, the next size up costs… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/diminishing-marginal-utility-popcorn/

Real World Pricing: At the Movies

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://beyondcostplus.com/blog/working/

Diminishing Marginal Utility

With increased consumption of a product there is a decline in the marginal utility that comes from the consumption of each additional unit.
Diminishing Marginal Utility Related Material The law of diminishing marginal utility states that as a person increases consumption of a product - while keeping consumption of… http://beyondcostplus.com/pricing-resources/pricing-definitions/diminishing-marginal-utility/

Diminishing Marginal Utility and Fresh Baked Brownies

Fresh-baked brownies illustrate the concept of diminishing marginal utility and how pricing to increase demand despite that.
Understanding diminishing marginal utility is essential to effective pricing. The good news is that it sounds far more complicated than it is. The concept, and the pricing models… http://beyondcostplus.com/blog/diminishing-marginal-utility-and-fresh-baked-brownies/