wu liao

Thursday, March 29, 2007

pricing strategy

the company sent me a magazine renewal letter. The offer is as follows:

- 2 years + 1 year FREE (75 issues in total), only HK$1,382.00
- 1 year + 1 year FREE (49 issues in total), only HK$780.00

at first glance, 1 + 1 seems a better bargain than 2 + 1...
per year, 2 + 1 costs $460 while 1 + 1 costs $390
per issue, 2 + 1 costs $18.4 while 1+1 costs $15.9

who in the world will pay more to commit to a longer period at a higher per unit and per year price?

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