Monday, November 16, 2009

Interesting Question

I was walking down the street with my colleague when we noticed a guy was hawking one of the local magazine/newspapers. Most of the time they are free; at least I know they are when you are entering/leaving the subway. But today this enterprising young man was offering them for "$1 donations", which is what made it remarkable at all. I turned to my coworker and asked, "does he really think that he will make more money by accepting $1 donations rather than just chargin $1 as the price?" I really don't know the answer, but perhaps for such an ubiquitous item at the lowest end of the price scale (which often goes for free) it does maximize his sales.