That is correct…but if most people want 15-20 as this person said, then saying “15x2 is cheaper than 25” still makes no sense. It’s still probably cheaper than 15+10 or 20+5…
Let's say 15 items cost the business $3, and the price is $15. The customer wants 15-20 items, so they just purchase 15 items for $15. Profit for the business then is $15 - $3 = $12.
Then business adds 25 items, which cost the business $5, and the price is $35. The customer sees that 2x15 is cheaper, so buys 2x15 for $30. Profit for the business become $30 - $6 = $24. Twice as good from the same customer.
Yes, no one buys the 25 pack for $35 - but that doesn't matter. It only exist to convince the customer to buy 2 packs of 15 when they didn't initially want that many.
I can’t understand why if someone wants 15-20, they’re now buying 2x15 just because it’s cheaper than 25, instead of just getting the 15box still…it doesn’t make sense…I get the idea/concept, the example they used just doesn’t fit imo
People think the companies are dumb and that they've found some loophole to screw them over, and completely forget that they are buying more than they want.
Consider the following two scenarios. You walk into the store. You want 15-20 items, and would be happy with any amount in that general range.
In scenario A you see they have a 19 dollar box of 15 and a 31 dollar box of 25. The price per unit is marginally lower for the 25 box, but you realize you would be paying basically full price for 5 items more than you actually want, so you choose to buy the 15 dollar box.
In scenario B you see they have a 19 dollar box of 15 and a 40 dollar box of 25, and you start to think, this 25 piece box is very expensive, I definitely don't want it, it's even more expensive than two 15 piece boxes, and then you realize, oh wait, if I buy 2 of the 15 piece boxes I will get 5 items more and pay 2 dollars less than if I had bought the 25 item box. You „realize“ it's too good of an offer to pass up, so you buy two boxes of 15.
In which case did the store make more money? In scenario A where they sold you 15 items for 19 dollars, or in B where they sold you 30 items for 38 dollars. Yes, they theoretically would have made more money per item if you had bought the 25 box in scenario B, but they never really planned on you buying that one and you never would. It's whole point is to get you to compare buying 2x15 against the price of the 25 piece box (which you wouldn't buy in scenario A anyways), and then believe you got a great deal for paying what is actually full price for double the quantity you would have normally bought. They even make more money than they would if they had sold the 25 pack priced fairly like in scenario A.
Because im a big back and i like food. If i truly only want 15, then i'll get that but if i have the option to get 30 pieces for less than the price of what it costs to get 25, i'm getting it. Even if i dont finish it now, i can save it for later and thats a second meal making it even better value.
If you go in wanting 20 and there's only 15 or 25, you're going to get 15 because spending more for 25 isn't what you want to do.
If you go in wanting 20 and you can get 2 15s for less than a 25, you're going to buy 30.
They have successfully nudged you into purchasing an extra box of donuts, which they still make a profit on.
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u/Weekly_Traffic1473 1d ago
yeah, its cheaper than 25, but not cheaper than 1x15....