Food for Thought.

Consider this business idea that might help improve your profitability. 

It is reasonable to expect that a line of similar products could quite easily be competing with each other.  Consider a caf? selling small, medium and large takeaway coffee serves.  Changing the price of one size serve of coffee, could shift sales to another.

A consumer might expect the pricing of small, medium and large coffee to be $1, $2 and $3 respectively.  But, what if the pricing is $1, $2.50 and $3.00?

Customer surveys have shown that people tend to avoid extremes ?? in other words they will favour the middle size.  And surprise, surprise ?? this is the size with the best profit!

Market research is as simple as experimenting on yourself when next purchasing a product with similar options.  What better place to get free advice from product pricing experts than at a McDonald??s store?

I would welcome anybody??s feedback who reads this, treats it with disbelief, but does some market research change their prices and improves profitability. 

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