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The economics of bulk buying - Sally's Journal
March 19th, 2006
01:31 am


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The economics of bulk buying

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Date:March 19th, 2006 12:01 pm (UTC)
Part of it is down to using pyschology against people, in order to get them to buy stuff and carry on making the shop a large humungous profit. After all if some people will buy single packs because they're carrying them themselves and others are buying 6-packs becuase they carry them in a trolley and then a car it makes sense to put the most "over the margin" prices on them. The middling size which may not sell and so get you may stiffed on (when they're still on the shelves 18 months later) you keep the price closer to what you paid for it from the makers.
Date:March 19th, 2006 11:08 pm (UTC)
Sounds plausible. Could check if they have nearer sell-by dates... Then if the 4-packs disappear from the shelves after a while, that would support that hypothesis as a size that didn't work, so they had to sell them off cheap.

Problem is, they'd be cannibalising their sales of 6-packs. I mean, at those prices it's cheaper to buy a 4-pack and two singles than a 6-pack. Maybe there's enough people that are so used to just chucking a 6-pack in the trolley that it's worthwhile, and it's only the real cheapskates who actually check the prices and get the 4-packs, and thus buy more orange juice than their cheapskate natures would usually allow. That's typically how price discrimination works - offer lower prices to people who are willing to go to the trouble of claiming them, and who are therefore likely to be the most price-sensitive. But it seems so little trouble to go to in this case.
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