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Posted

A side note on the pricing. And he is not alone, many masseurs price their services in ways that most economists and managers would find curious.

 

His first 30 minutes are $80, the second 30 minutes are $40, but then the following 30 minutes are $60. Shouldn't the price for additional chunks of time go down or at least stay flat, which is the case for his outcalls? I mean, once you incur the one time cost of setting up the appointment, receiving the client, etc. any additional time should go straight to the bottom line. The only reason why the third chunk of time should be more expensive is if he gets tired or if he does some things that he doesn't do otherwise, but then this chunk of time should be relatively more expensive in his outcalls too? Questions, questions,...

  • 1 year later...
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Posted
A side note on the pricing. And he is not alone, many masseurs price their services in ways that most economists and managers would find curious.

 

His first 30 minutes are $80, the second 30 minutes are $40, but then the following 30 minutes are $60. Shouldn't the price for additional chunks of time go down or at least stay flat, which is the case for his outcalls? I mean, once you incur the one time cost of setting up the appointment, receiving the client, etc. any additional time should go straight to the bottom line. The only reason why the third chunk of time should be more expensive is if he gets tired or if he does some things that he doesn't do otherwise, but then this chunk of time should be relatively more expensive in his outcalls too? Questions, questions,...

I've wondered about that too, whether such illogical pricing is just wishful thinking or does it indicate something else.

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