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Volume discounts don't always make sense. Charging a higher per-unit cost in a larger pack size contradicts the traditional cost plus pricing model but offers vendors a great way to increase profits.

Earlier today I was speaking with a florist that was looking at changing the way they charged for some ancillary things (delivery, etc.) and it brought to mind the dangers of unbundling things perceived as entitlements.

Access to in-flight internet is growing and presents exciting new opportunities for both travellers and airlines with the right strategy - and it's not the one most travellers think.

Hotels employ some advanced techniques when pricing in-room internet access - but are they being too greedy?

A movie theater showcases many advanced pricing strategies including pricing that accounts for the diminishing marginal utility of popcorn and entices us to buy more than we could ever enjoy.

Fresh-baked brownies illustrate the concept of diminishing marginal utility and how pricing to increase demand despite that.

Electronic books clearly cost less to produce and distribute but often sell for as much or more as the printed version. Why are ebooks so expensive?

A real-world example of how vendors hide price increases by reducing the contents of standard package sizes and keeping the price the same.

The idea of charging more for less might seem preposterous but with a little misdirection that changes what we consider value it's actually quite easy.

Understanding how, when and why manufacturers use "stealth" prices increases – raising prices without (they hope) you noticing.