Fast Food Surge Pricing? Price Gouging? WTF?

There are ideas that sweep through the business world that slowly work there way into every aspect of business though at first they seemed a little odd. It’s like going to the beach and coming home with sand in your shoes — it’s everywhere.

I offer two examples:

 1. Creating a club around a set of benefits such as Prime membership with Amazon; and,

 2. Subscription services such as was copied by Restoration Hardware.

Each of these ideas is related and each results in a true economic benefit to the customer whilst creating a solid, secondary cash flow for the sponsor.

Prime members number 230,000,000 and each will pay $179 for their next renewal. It started out at $79 nineteen years ago in 2005.

Do the math, that’s a lot of money. Continue reading