Just found this article. Probably not news to a lot of us, but still a good read.
It is interesting that the article’s headline uses words with negative connotations: a “trick” and “overspending”.
This “decoy pricing” is a pricing structure that is common in SaaS companies looking to maximise revenue. And yet, some describe it negatively.
Very true, Steve. I don’t see it as a negative.
Not that surprising as the BBC writes from a consumer perspective and on top of that these words will probably trigger plenty of clicks.
It’s interesting though - how do you frame it in an economically constructive, positive way?
I feel the correct answer is something like: an ideal pricing structure maximises value for both the consumer and the supplier.
However, just because one particular strategy maximises value for the supplier, that might not be a positive thing if the cost (multiplied by the number of transactions) is significant.
I don’t think (hope!) any of us want to be in this game to be rentiers.