Veblen Goods & Pricing Hurdles For The Flower Business
- Mar 6, 2018
This week new content was added that looks at Veblen goods. A contradiction of the law of demand, Veblen goods are special in that demand goes up in relationship with price. Demand for most goods decreases when prices go up and increases when prices go down. Demand for Veblen goods, an example of reverse elasticity, exhibit the opposite behavior.
Beyond Cost Plus content was also added to Business.com in an article that looks at how retailers can use pricing hurdles to selectively discount. The goal is to discount when needed to make a sale, but without cannibalizing more profitable full price sales.