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3/10 cent a gallon for water delivered straight to the home. $1.50 gallon for a jug in isle 13 at your super market or $1.75 for a 20oz bottle at the checkout
by parfe 16y ago
3/10 cent a gallon for water delivered straight to the home.
$1.50 gallon for a jug in isle 13 at your super market
or $1.75 for a 20oz bottle at the checkout counter.
Are these all the same product? Do they even compete?
- patio11 16y agoThat example is going in my playbook. (And the product is available for free, in nigh-infinite quantities, in every occupied building in America. You don't even have to ask for it. In fact, asking for permission to take some would have whomever you asked immediately question your mental state!)
- sgoraya 16y agoThere is an interesting book by Adrian Slywotzky, The Art of Profitability, that goes over various profit models. I think the above example falls into 'Multi-Component' profit, in that the same product (water) is priced differently in different businesses (super market, convenience store, delivery); since customers behave differently in each purchasing situation you see the ability to price the product in various ways. Another example would be how Coke is priced (to restaurants, grocery stores, vending machine).