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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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From:smhwpf
Date:March 19th, 2006 11:08 pm (UTC)
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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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