Title - Story of old biker’s moaning about price of drinks at service stations Tags - callumstory
- Took my car for a wash and had a coffee whilst waiting
- Old bikers sat nearby with drinks
- They were moaning about the cost of drinks at service stations - gasping at ridiculousness of charing £5 for a cup of tea and £8 for a coffee
- The guys criticised the idiocy of people who pay those prices
- They criticised the service station for their audacity and greed
- They showed a lack of understanding of pricing, value, why money moves
- People DO pay £5 to £8 for drinks at services
- They buy an energy boost, a moment of solitude from the monotomy of the road
- And it’s the only place they can get that without driving for miles off the motorway, so they are paying to avoid the pain of extending their journey, the energy and effort required to find somewhere else, and the increase in fuel costs of finding somewhere else
- Price is not determined by fairness, in comparison to the “normal price” or any other frame of reference
Purposes:
- Demonstrate price elasticity
- Demonstrate why money really moves from one place to another
- Demonstrate value of testing prices (in comparison to other pricing methods)