Logic has its place. This is not always the case in life, as many things that happen are due to luck, fortune, and emotions. But usually, especially in terms of the buying and selling of goods in the marketplace, there is some logic involved.
Example #1: Grocery Store
If you buy just one item from a store, you might pay more per-unit than if you bought a larger quantity. You know, price discounts can be worthwhile for a business. Perhaps you won’t get a discount for buying more. But certainly, you won’t pay more.
Well, I saw something different at a grocery story recently. I was in the produce section, and noticed that they had a prominent display of figs for sale. Now, the real reason it caught my eye is because I don’t typically see figs displayed so prominently. It’s not like figs are your typical, everyday grocery purchase! But, this store was promoting them.
Figs as an attention-getter. Who knew?
Maybe it’s because this was such an atypical item to be promoted that their pricing also caught my eye. They had a sign noting that they were for sale at $0.69 each, and another saying $11.99 per case. The thing is, those cases didn’t look like they had too many figs.
Intrigued (and wondering why I’m paying close attention to figs, but that’s another matter!), I looked over the cases and saw that they had 14 figs each. That didn’t seem right, so I did a super quick scan again. Yes, it confirmed that I still know how to count. There were 14 figs.
Let’s do the math here: 14 figs at $11.99 equals $0.86 per fig.
So, if you bought them individually at $0.69 each, you would pay $9.66. Buy them in bulk, and you’ll pay $2.33 more. That’s a 24% penalty for buying the larger quantity.
Say goodbye to volume discounts, and hello to volume penalties.
There could be some real logic here. It’s not readily apparent to me. Rather, it seems illogical.
Example #2: Gas Station
It seems as if many gas stations are located close to one another. Competitive stations are doing battle in close proximity, in heavily trafficked areas. These are often at intersections where one station could be a corner and another is directly opposite.
Recently, I stopped to buy gas at one station without really checking the prices at the adjacent station. Well, I really didn’t check the prices at mine either. I needed to buy gas, and that’s really I thought of at the moment.
As I was filling up the car with gas, I took a look a look at the price per gallon. Then, I glanced at the other station nearby.
To my surprise, the other station was charging $0.07 less per gallon. And there were a few more cars over there than at the station I was at.
Now, I’m not sure that there is any noticeable difference in the gas. Same octane, just a different brand. If there is a real difference between gas sold by major brands, it’s news to me.
By not paying attention, I got burned. Sure, the $0.07 per gallon difference isn’t that significant. I might have paid a dollar more and that’s it. But still, it was totally avoidable. Clearly, others must have noticed and were giving the other station more business.
Pay attention! Check prices when you’re shopping, and don’t assume that you’re getting a fair deal all the time.
If you’re buying more, you might not be getting any kind of discount. Or, you might be paying more than you would at the store next door. Either way, prices for goods and services aren’t always logical.
With smaller items like I mentioned, the amount involved isn’t a huge deal. But for bigger ticket purchases, the money can add up. That’s where we really need to pay attention.
I don’t have any specific recent examples for big purchases. However, I’m sure those illogical price differences are alive and well out there!
My Questions for You
Do you pay what you’re charged without a second thought, or do you pause and think about discounts and competitor prices?
Have you ever seen any big differences in price between similar items, or other interesting pricing decisions/policies by stores?