Diminishing Marginal Utility and Fresh Baked Brownies

Fresh-baked brownies illustrate the concept of diminishing marginal utility and how pricing to increase demand despite that.
  1. Home
  2. Blog
  3. Diminishing Marginal Utility and Fresh Baked Brownies

Diminishing Marginal Utility and Fresh Baked Brownies

  • Apr 18, 2017
  • admin

Understanding diminishing marginal utility is essential to effective pricing. The good news is that it sounds far more complicated than it is. The concept, and the pricing models used to maintain demand in spite of it, can be illustrated by looking at the enjoyment you get from a plate of fresh brownies.

Share:
Real World Pricing: At the Movies
Beyond Cost Plus at the Great Lakes Floral Expo

More Entries...

One Size Does Not Fit All: Pricing Gas/Car Washes
Sep 14, 2020, 1:07 PM
Be Careful What You Ask For (When You Ask For Too Little)
Sep 1, 2020, 11:58 AM
What Kobe Beef Teaches About Flower Pricing
Aug 18, 2020, 12:04 PM
Amazon Prime High-Low Delivery Charge Model For Florists
Aug 4, 2020, 12:05 PM
Cost-Plus vs Value-Based Pricing in the Flower Business
Jul 21, 2020, 12:08 PM
Unique Value/Substitute Awareness Effects
Jul 7, 2020, 12:09 PM
Anatomy Of An Effective Pricing Hurdle: Premium Ice Cream
Jun 23, 2020, 12:09 PM
The Single Rose Disconnect – They Can Make You Money!
Jun 9, 2020, 12:22 PM
What A Bad Menu Can Teach A Florist About Selling Flowers
May 5, 2020, 12:51 AM
Gasoline, And Why You Should Always Let Customers Pay More
Apr 28, 2020, 12:52 AM

Search