Beyond Cost Plus Summary: March 2016

Mar 31, 2016


Posts this month included real world example of weight-out (a kind of hidden price increase) discounting candy and unlimited free exchanges.


One post this month looked at something called weight-out, a kind of hidden price increase. It's kind of like de-sheeting, the practice of sneaking a price increase on tissue paper or paper towels by removing sheets from the package and leaving the price the same. In this real world example of weight-out you'll see how a supermarket raised the true price of their shrimp by reducing the weight of their (formerly) standard one pound pack size... and look at if florists can/should use a version of out-weighting to increase the price of flowers.

Another post looks at discounting candy to account for diminishing marginal utility. This topic gets covered a lot here, but only because it is so relevant to florists. Recognizing the diminishing marginal utility of flowers – and pricing accordingly – can help most florists sell more.

And finally there is another post that looks at an extreme version of the Costco/Amazon Prime pricing model. Here the customer pays a high up front fee for a battery (for recharging their mobile devices) with the promise of unlimited free swaps in the future.

Again – is there a way that florists can use this tactic to sell more flowers? There is, and it involves delivery fees.

Category: Activity Summary

Sponsored by FloristWare

Beyond Cost Plus is sponsored by FloristWare, a flower shop point of sale software system, designed to help real florists be more successful. This sponsorship is part of their ongoing commitment to supporting florists.

FloristWare – flower shop software/POS system.

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