Source
Priceless
William Poundstone's book on the psychology of pricing. Cited for an LA off-license that sold out of cheap wine only after raising its price from 79 cents to 99 cents, and for the German rail BahnCard — a roughly 400-euro annual subscription for 50% off all rail travel, which grew to 3 million customers and proved profitable enough that a 3,500-euro unlimited-travel tier (BahnCard 100) was added on top. Episode 57 draws on it heavily and directly for charm pricing's entire history: the cash-till origin story, Eli Ginzberg's 1936 catalogue study, and other supporting material.
Discussed in
- Episode 42 — 42- Common pricing mistakes most businesses make
- Episode 57 — 57- Charm Pricing- The greatest trick in marketing (main source for the episode)