Anecdote related to pricing: There is a cafe called wishbone which sells large muffins for $4.50 and small muffins for $2 despite the fact that a small muffin is exactly half the size by weight (it's the kind of franchise cafe that sells things packaged in plastic wrap with nutritional information). I found this mindblowing. But it actually makes total sense. They obviously decided that there were the type of people who always bought the large muffin who were willing to pay around $4.50 for it, and the type of people who just want a little snack to eat with their coffee who were most likely to pay around $2 for it.... (read more)
Anecdote related to pricing: There is a cafe called wishbone which sells large muffins for $4.50 and small muffins for $2 despite the fact that a small muffin is exactly half the size by weight (it's the kind of franchise cafe that sells things packaged in plastic wrap with nutritional information). I found this mindblowing. But it actually makes total sense. They obviously decided that there were the type of people who always bought the large muffin who were willing to pay around $4.50 for it, and the type of people who just want a little snack to eat with their coffee who were most likely to pay around $2 for it.... (read more)