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Your two redirect scenarios isn't surge pricing though, and I think run counter to the very nature of surge pricing. In the first scenario the restaurant is re
by passwordoops 3y ago
Your two redirect scenarios isn't surge pricing though, and I think run counter to the very nature of surge pricing.
In the first scenario the restaurant is reducing stress on the kitchen and the client by offering an alternative with a good reason. If the restaurant instead said "you can pay an extra $2 or wait 15 minutes", then it's comparable but I haven't run into that yet.
In the Happy Hour scenario the restaurant offers specific discounts to increase sales volume
- bryanlarsen 3y agoHappy Hour is static surge pricing.
- marklubi 3y ago> Happy Hour is static surge pricing. Happy Hour is incentive pricing to try to get customers to come in earlier than normal.
- bryanlarsen 3y agoSurge pricing is also incentive pricing to try to get customers to come in earlier than normal.
- marklubi 3y agoIt is not the same. One is designed to incentivize a behavior (come around more/earlier), the other is designed to reduce the behavior by disincentivizing it (don't come around when we're busy). While I actually like surge pricing in situations like a natural disaster or New Years Eve (e.g., gets more drivers/suppliers on the road), as proposed by Wendy's it's a very poor anti-pattern. One is a loss-leader, the other is not. Edit: This is exactly why I usually quote the person I'm responding to (I failed to do it here). Their current message is not what they originally posted, they edited it and pretty much repeated what I said.
- bryanlarsen 3y agoI didn't edit anything. And happy hour isn't a loss leader.
- passwordoops 3y agoNo. Surge pricing = increase price in response to demand with a goal of increasing profit margin Happy Hour = decrease price of specified items at specified times to drive demand and increase sales volume
- bryanlarsen 3y agoThose aren't fundamentally different. I've seen places raise their standard prices and then make the old prices available during Happy Hour.
- xboxnolifes 3y agoSurge pricing doesn't only apply to increasing price.
- passwordoops 3y agoDynamic pricing has to do with actively fluctuating price point depending on varying criteria and can be an increase or decrease. Surge pricing, as the definition of "surge" suggests (1), is a subcategory of dynamic pricing where the price is increased in response to higher demand. (1) https://dictionary.cambridge.org/us/dictionary/english/surge https://dictionary.cambridge.org/us/dictionary/english/surge
- bryanlarsen 3y ago"A sudden and great increase" may or may not be unexpected. So surge pricing doesn't need to be dynamic if the surges are predictable.