Cheap Tuesdays, A Self-Propogating Pricing Hurdle

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The Beyond Cost Plus site has some new content on self-propagating pricing hurdles – hurdles that make themselves even more effective.

Examples would include things like Black Friday sales – where the circumstances (shopping at midnight) are the initial hurdle and the experience (crowds of frenzied, angry shoppers and long lines) become a secondary hurdle.

The example at Beyond Cost Plus focusses on the tradition of cheap Tuesdays at the movies, and how it effectively deters those who are likely willing to pay full price. This allows the theater to practice price discrimination – selling the same product to different customers at different prices – by discounting only when necessary.

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