The Pricey Purse That Created a Problem Hermés has a problem that only a luxury brand could create. There is too much demand for their $200,000 handbags. And it’s entirely their fault. The Birkin Bag. A Hermès Birkin bag used … Continue reading The luxury bag
They Changed the Way You Buy Your Basics At 6:15 in the morning on March 6, 2012, Michael Dubin woke up and checked his computer. He was puzzled by what he saw — actually, by what he didn’t see. Before … Continue reading How to exploit giants’ weaknesses
‘Anchoring’ was at work in setting the price of Novartis’ new gene therapy If the Empire State Building happened to be hollow, could you fill it with 1 billion ping pong balls? Would that number fall short, or would you … Continue reading A multimillion-dollar price tag
When Ketchup and Parking Are Similar There is no such thing as one price for ketchup. Looking at how much shoppers paid for a 36-ounce bottle of Heinz ketchup (in 2007), we can see $1.66 was the average. However, among … Continue reading Price dispersement
A novel way to prevent email overlaod I ask people to donate $20 to cold-email me. And I think everyone should. Allow me to start by making this personal: this is what I do for a living. I spend my … Continue reading The ‘sender pays you’ model
Prominence of Price People’s awareness of what products cost has been facing a decline. De Chernatony and Knox (1992) showed that consumers were much more accurate in recalling prices in 1958 than consumers in 1984, by doing a meta-analysis of … Continue reading Price recall
3 ways that Class Pass uses behavioral science to help us work out more (or: how to manipulate people for good) Their pricing encourages usage. The economically best option for people who like to work out is to get a … Continue reading Tips for classes
