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If Costs Determine Price Why Do E-Books Cost More?

The traditional cost-plus approach to pricing dictates that price is a function of cost. So why are e-books (no printing, binding. etc.) more expensive?
  The traditional cost-plus approach to pricing dictates that price is a function of cost. So why are e-books (no printing, binding. etc.) more expensive?   If you are an… http://beyondcostplus.com/blog/if-costs-determine-price-why-do-e-books-cost-more/

More Money For Less Car? It Depends On What You Value

Why would a car that has been stripped of features like air conditioning, sound system and floor mats sell for more money even though it costs less to make?
  Why would a car that has been stripped of features like air conditioning, sound system and floor mats sell for more money even though it costs less to make?   In the… http://beyondcostplus.com/blog/more-money-less-car-it-depends-what-you-value/

Differential Pricing Example – DVDs

Popular movies are released on digital media in a bewildering number of versions and formats in a great example of differential pricing.
Differential Pricing Example – DVDs Popular movies are released on digital media in a bewildering number of versions and formats in a great example of differential pricing.  … http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/differential-pricing-example-dvds/

Price Discrimination vs Differential Pricing

The terms Price Discrimination and Differential Pricing are sometimes used interchangeably, and there can be some overlap, but there are some important differences as well.
Price Discrimination vs Differential Pricing They were just feet away from each other, but they were directed at two completely different kinds of buyers. The more expensive one… http://beyondcostplus.com/pricing-resources/pricing-examples-case-studies/price-discrimination-vs-differential-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/