Regarding on-demand pricing, as the story was unfolding about Wendy's, it made me think about airlines. I doubt hardly anyone pays the same price for a seat in coach; or a seat in first class, for that matter. No one can definitively say "It costs X to fly from NY to LA" because "X" does not exist. The price of your ticket depends on dem…
Regarding on-demand pricing, as the story was unfolding about Wendy's, it made me think about airlines. I doubt hardly anyone pays the same price for a seat in coach; or a seat in first class, for that matter. No one can definitively say "It costs X to fly from NY to LA" because "X" does not exist. The price of your ticket depends on demand; when you buy the ticket; if you use money, points, a "special" credit card; etc. And we as the consumer decide if the ticket price is fair or if we want to go down the 'online road' and price it out elsewhere. Same with Wendy's -- either the convenience and timing work for you to pay the higher price, or go down the road to McDonalds, or Burger King, or Five Guys, or In-N-Out Burger, or Shake Shack, or Smashburger . . . I don't know . . . maybe something has changed since I got my Economics degree all those years ago, but I thought that is how competition was supposed to work???
Regarding on-demand pricing, as the story was unfolding about Wendy's, it made me think about airlines. I doubt hardly anyone pays the same price for a seat in coach; or a seat in first class, for that matter. No one can definitively say "It costs X to fly from NY to LA" because "X" does not exist. The price of your ticket depends on demand; when you buy the ticket; if you use money, points, a "special" credit card; etc. And we as the consumer decide if the ticket price is fair or if we want to go down the 'online road' and price it out elsewhere. Same with Wendy's -- either the convenience and timing work for you to pay the higher price, or go down the road to McDonalds, or Burger King, or Five Guys, or In-N-Out Burger, or Shake Shack, or Smashburger . . . I don't know . . . maybe something has changed since I got my Economics degree all those years ago, but I thought that is how competition was supposed to work???