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I just mean that when you lower prices, more people will buy it, and they’ll buy more of it. That can more than offset the lower margin on a per item purchase.
by baron816 3y ago
I just mean that when you lower prices, more people will buy it, and they’ll buy more of it. That can more than offset the lower margin on a per item purchase.
If your train has 200 seats, it’s better to sell 200 tickets at $65 per ticket than it is to sell 100 at $100 per ticket.
- qwytw 3y agoOf course, but if operating a train costs you $10 per seat and you start charging $5 it will never break even.. And the article says: "€49 a month ‘Deutschlandticket’ has led to a 25 per cent rise in passengers on national railway company Deutsche Bahn's regional services" and a daily (regional) ticket costs about €20-50 depending on area. I mean obviously it might very well be worth doing this for other reasons but somebody will have to subsidize the lost revenue for various transport companies.