OldPilot wrote:
......I hope you know they round prices up, not down. ......... If fuel is $4.89 per gallon, do you pay $5.00 per gallon and feel good about it?
Glad you're enjoying the discussion. It's also giving me food for thought and some understanding and some insight into how others who _don't_ seem to register anything less that benign in an advertised $19,995 price on a new car or a $69.99 GPS subscription are not necessarily sleepwalking.
On that, say, $5 (rather than $4.99) burrito or the $8 bottle of wine we'd have to know the details of pricing strategies (and there are many different ones) and costs at any particular merchant to know which prices got rounded up and which got rounded down. I have a close relationship eith our non chain supermarket owner, so I'll go ask him. Though that would only tell us about his pricing practices I'll concede it probable it's often, even mostly, rounded up. But the fact that in places that price the bottles wine at $8.00 I never see them pricing one at, say, $8.04 suggests that at least _sometimes_ they're rounding down.
Clearly at this point Walter would be rounding up to price the VFR subscription at $70.
There's some so-to-speak for lack of a better word "natural" or "normal" or "honest" or "fair" price for a item (for example, if the business intends to operate at a 20% gross orifit margin) and it would seem that rarely hit exactly on ETHIER $70.00 _or_ $69.99..... so the merchants pricing either iof those points are no more or less likely to be rounding up OR down to hit what they view as customer compatible pricing. The $69.99 guy is just giving up one cent for his belief he'd lose some sales if he pocketed that penny.
IMO if Walter is actually correct wiped he implies he could lose a few sales of subscriptions pricing at $70 I would have to say there are are few mire pilots than I wish sharing the pattern with me whose judgement abilities I'd worry a bit about.😉
Seriously...I'd bet big money you'd still have purchased your first iFly subscrption at $70 and have lost no sleep about the cent..and certainly wouldn't refuse to renew now if Walter raised it once cent.
Did I bet that right?
The $4.89 v.s. $5.00 per gallon seems like a mistaken digression, and an apples to oranges comoarision:
Of course no one would opt for $5 just to have a nice round number price. There's a 2.2% increase there of real _significance_over a year of driving. That works out t0 $79 a year for someone driving a 25MPG 30,000 miles per year.
On the other hand, We started this taking about adding one cent to a annual $69.99 subscription v.s. $70.....
that's only a 0.014% increase. A whole 25 cents over the years if you're still flying iFly a quarter century from today.😏
Thanks for your thought provoking comments.
Respectfully,
Alex