Tag: Business

The Art of Illusion in Pricing: Dishwasher Capsules and Subscription Models | August 09 2025, 13:06

An interesting marketing tactic: three different types of dishwasher capsules are sold at the same price: good Complete, premium, and premium plus. Identical packaging, identical prices, but of course, a different number of capsules. For example, platinum has 59 capsules, while the plus version has 47. It seems such odd numbers hardly register in the buyer’s mind, but not every buyer fundamentally thinks about whether it’s important for them to save money. However, if you compare the extreme versions, the platinum plus version is simply twice as expensive as the complete version.

Another interesting example – a subscription to LLM (Chatgpt, Gemini) for $200 a month. It would seem, what fool would pay a couple of hundred for something barely better than the basic for $20-30. But it’s a very sensible decision when you have a market of hundreds of millions of users: most of them are organizations. For an organization, $200 a month is not much different from $20 a month, both are negligible for the budget. Well, okay, even multiplying by hundreds and thousands of subscriptions, there are those who place themselves among slightly more premium clients at a small price for them.

Unexpected Repair Success at a Premium Bike Shop | August 07 2025, 02:41

Today, I had a little odyssey trying to find a place to tune up my bike. It’s a few years old, tired, and in need of attention. I visited three shops, each told me it would take at least a week or two and would cost about 200 dollars. Everyone said there were thirty people ahead of me. Eventually, I took a chance and went to the last shop which I initially thought was too premium and expensive to consider at all: their main inventory includes triathlon Cervelo and Factor bikes with five-digit price tags. But here’s the surprise: they took the bike right away, told me to wait for a call today, and if anything serious—a decision from me would be required. In the evening, they called and told me it was all done, and the cost… just 32 dollars! I’m very glad that I did not have to overpay or wait for weeks.

This goes to show that sometimes, to achieve something, you just need to act contrary to standard patterns of behavior.

Stability at a Price: The Costco Hot Dog Phenomenon | August 02 2025, 18:26

What is stability? The price of a hot dog with unlimited soda at our Costco has not changed for 41 years, since 1984. Indeed, to have the privilege of buying a hot dog for one and a half dollars here, I need to spend $3000 a year in their store (to cover the membership through cashbacks; otherwise, I lose up to $65 on the annual membership if without cashback).

And that’s how they sell 100 million hot dogs a year.

Alaska Airlines Omits Boeing Branding from Safety Cards: A Strategic Move? | July 31 2025, 13:18

When I flew to Seattle and back on Alaska Airlines, I noticed that the Safety Card in the seat made no mention of the plane being a Boeing (left picture mine, second one from online). Not even in fine print. Only the model was specified — in my case, a 737 MAX, incidentally the same model from which a door detached mid-flight on an Alaska plane. So, from the inside of the plane, it’s impossible to tell whether it’s a Boeing, an Airbus, or a McDonnell Douglas, unless you know that 737 is only made by Boeing.

My first thought was, of course, what else could Alaska do to salvage its reputation, except to remove the word Boeing wherever possible.

But it turns out this has been the case before. One of the Alaska flight attendants mentioned that it’s been like this for about 8 years, at least. Another flight attendant confirmed that this is the case with all planes.

It seems that they simply don’t want to promote another company for free, and Boeing certainly doesn’t want to pay all the airlines for such advertising, meanwhile charging them for every little thing. And they cannot oblige them either. An interesting case indeed.

Why Aren’t Smart Systems Widely Used in Commercial Vehicles? | July 18 2025, 20:33

I wonder why smart systems, cameras, driver assistance systems in driving are not used on commercial transport such as trucks and buses? It’s one thing to integrate such statuses into a $35K car, and another into a truck or bus, whose prices start at least at $100-150K, and in some cases more. Buses are often purchased by organizations for whom an extra $5-10K on a price of $100-150 may not make much of a “difference” in deciding what to buy. Although of course understanding that there, with a tender for the minimum price, every thousand could be decisive. On the other hand, insurance might be lower, and it can be nicely sold to people (passengers). Also, it seems that truck drivers falling asleep are simply more dangerous and costly than personal car drivers falling asleep.