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Pricing Lessons From MLB Tickets

Being honest about how fans value different games helps baseball teams sell more tickets at greater profits (and recover money otherwise lost to scalpers).
  Being honest about how fans value different games helps baseball teams sell more tickets at greater profits (and recover money otherwise lost to scalpers).   Not that long… http://beyondcostplus.com/blog/pricing-lessons-mlb-tickets/

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/

Hurdles & Price Discrimination – New Content

New content explaining the concept of hurdles and their place in a comprehensive differential pricing/price discrimination strategy has been added.
New content explaining the concept of hurdles and their important place in a comprehensive differential pricing/price discrimination strategy has been added.   One of the… http://beyondcostplus.com/blog/hurdles-price-discrimination-new-content/

A More Profitable Way To Quote Weddings and Events

A new way to quote weddings and events that results in more sales and larger profits by self-streaming customers according to how they value your product.
A new way to quote weddings and events that results in more sales and larger profits by self-streaming customers according to how they value your product. Beyond Cost Plus: A More… http://beyondcostplus.com/pricing-programs/quoting-weddings-and-events/

New Customers Through Selective Discounting With Hurdles

Though sometimes discouraged discounting, done selectively using hurdles, can increase sales & profits by motivating new and/or price sensitive buyers.
Related Material In the flower business discounting is often discouraged. But, used properly, discounts are an excellent way to motivate price sensitive retail customers into… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/new-customers-through-selective-discounting-hurdles/

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/

Anchoring On Price Tags

The price tags on sale items often use anchoring very effectively by including the higher regular price alongside the discounted sale price.
The price tags on sale items often use anchoring very effectively by including the higher regular price alongside the discounted sale price. Anchoring Example – Price Tags The… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/anchoring-price-tags/

Decoy Pricing on Indiegogo

A recent Indiegogo campaign does a great job of using discounting and decoy pricing to increase the number of units sold.
Discounting and Decoy Pricing on Indiegogo A recent Indiegogo campaign effectively uses discounting and decoy pricing to increase the number of units sold by convincing you to buy… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/decoy-pricing-indiegogo/

Same Product, Same Store, Different Prices = More Sales

How a retailer offers identical products at very different prices, just feet away from each other inside the same store, to efficiently allow customers to segregate themselves and increase sales.
A new example just added to the resources section shows an interesting real world example of a retailer offering identical products at different prices... just feet away from each… http://beyondcostplus.com/blog/same-product-same-store-different-prices-more-sales/

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/

Boxing Day Sales

A surprising real world example where identical products are offered for every different prices just feet from each other in the same store.
Boxing Day Sales Boxing Day (a major retail event in Canada and the UK) is a great example of how hurdles can be used to target the customers most focussed on price. If a Canadian… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/boxing-day-sales/

Same Product, Same Store, Different Price

A surprising real world example where identical products are offered for every different prices just feet from each other in the same store.
I recently talked about a local butcher and how they use two different pricing models, or expressions of price, to make the same product, at the same price, appeal to different… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/same-product-same-price-different-price/

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/

Hurdles

Part of a larger price discrimination strategy hurdles are used to separate those customers that place a lower value on a product and offer them prices tailored to that valuation.
Hurdles A hurdle is a kind of price discrimination (or differential pricing) in which a customer is rewarded with a lower price in exchange for jumping over a figurative hurdle.… http://beyondcostplus.com/pricing-resources/pricing-definitions/hurdles/

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/