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Proof There Is More To Pricing Than A Cost-Plus Formula

Still clinging to a cost-plus pricing formula? Here is more proof that the biggest and most successful companies have moved beyond cost plus.
  Still clinging to a cost-plus pricing formula? Here is more proof that the biggest and most successful companies have moved beyond cost plus.   Pricing is important.… http://beyondcostplus.com/blog/proof-there-more-pricing-cost-plus-formula/

Pricing Lessons From The Travel Industry

The travel business is tough, and they survive by innovating. Other industries can benefit from their research and experience.
  The travel business is tough, and they survive by innovating. Other industries can benefit from their research and experience.   The travel business is not easy. Thin… http://beyondcostplus.com/blog/pricing-lessons-travel-industry/

Boxing Day Sales

A new addition to our resources section illustrates some of the sophisticated pricing concepts involved in Boxing Day sales.
A new addition to our resources section talks about how Boxing Day Sales (a major retail event in Canada and the UK) effectively employ many sophisticated pricing strategies in… http://beyondcostplus.com/blog/black-friday-boxing-day-sale-pricing/

Virtual Haggling Over a Hotel Suite

Everyone expects a car dealer to make offers and counteroffers as they read your responses. The same thing now happens online when booking a hotel room.
As you can see they suggest two upgraded rooms: 2 Double Beds Executive Floor This upgraded room is priced at $169, a $30 premium over the standard room rate of $139. 1… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/virtual-haggling-over-price/

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/

In-Room Internet Access at Hotels

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://beyondcostplus.com/blog/room-internet-access-hotels/

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/

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 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/