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> But imagine you're a small business, and you price the croissants you've just spent hours making at €1 each and you know you'll only get €0.79 of that. It fee
by drbaba 3y ago
> But imagine you're a small business, and you price the croissants you've just spent hours making at €1 each and you know you'll only get €0.79 of that. It feels unfair.
Then price the croissant at €1.25 instead? The US method would still make the customer pay that amount; the only difference is whether the math is done once by the seller or every 10min by a new customer.
- sneak 3y agoI bet there is a difference in revenue, too. Customers are not rational. Lower advertised numbers (even if the out of pocket cost is the same) will likely result in more customers and sales.
- drbaba 3y agoIf one business excludes tax from the price while every other business includes it, that’s misleading advertisement. I think writing the full price to be paid by the customer should be mandated by law, in which case no business gets a relative advantage over any other. Where I live, we go even further: if you offer a subscription with a binding period, you also have to write the minimum total amount to be paid by the customer before they can cancel the subscription. This helps prevent customers into getting tricked into spending more money than they can really afford, which is a good thing?