ST Alpha - "I'm not so sure - you can attract consumers with low prices, and hope they don't calculate the full cost of what they're buying" (Reading a Post)

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I'm not so sure - you can attract consumers with low prices, and hope they don't calculate the full cost of what they're buying

Posted by Roger More (aka RogerMore) Apr 6 '10, 09:59

Airlines are doing this. They are keeping fares low but introducing new charges for checked baggage, carry on baggage, food & drink on the plane, blankets, etc.

Either they're assuming that customers will factor in the services they want from the airline into the airfare price. Or they're betting that once customers are on board thanks to the cheap fare, they won't mind paying extra for anything above the basic service of being transported from A to B.

I think it's a little of both.

Responses:

(but I don't believe the restaurant doom-and-gloom scenario that TFox is suggesting - tipping is less of a big deal in Canada & uncommon in Australia - Roger More Apr 6, 10:00 2
- [deleted]
- it's built in to the prices in UK and Europe -- nm - the 40 year old virgin Apr 6, 10:02
[deleted] 1
- and some will just say fuck it and shut their doors, because taking full risk on labor costs is suicide for a lot of places. -- nm - TFox Apr 6, 10:01

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I'm not so sure - you can attract consumers with low prices, and hope they don't calculate the full cost of what they're buying

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