Community Section -

Price Options for a Newspaper

Ed Kless - 07/20/2010

A Sage Partner and friend of mine, Steve Bond from TAG, sent me an example of pricing options he received from a newspaper. The options were as follows and presented in this exact order:

  • 1 Year Online & Print Subscription $149.00
  • 2 Year Online & Print Subscription $385.39
  • 6 Months Online & Print Subscription $148.34
  • 3 Months Online & Print Subscription $83.74

Two questions: 1) Do you think this was intentional or just haphazard? Why or why not? and 2) Which option would you have chosen?

Note: This post has been altered from its original per a request.

Comments | 0 Trackbacks | Permalink | Pricing on Purpose (aka Value Pricing)

Comments

Doug McDavid

Hi Ed --

One thing that might make this make sense is if there is a simple typo on the 1-year deal.  If there was substitution of a “1” for a “2”, then it should have been $249, and each larger increment would be a discount from the simple doubling of the next smaller increment.

Otherwise, take the 1 year deal and run!

Dean

1 - Not haphazard. The more choices the better ... for them. [The paper] hopes to drive the choice to 3 mos.—least commitment, lowest overall cost, but highest per unit cost for them. Presumably renewed automatically ... killer deal for them.

2 - 1 yr deal has lowest per unit cost. Assuming a bunch of things, that would likely be the choice. But ... why subscribe at all? Most of what is in that paper is free on the interwebs. So all are a bad choice, eh?

Bill Kizer

Typo. How do I know for sure? I called the [paper] & spoke with the advertising director who asked me not to use her name.

What’s funny about this is that this is the first that it’s been brought to her attention, so either no one is interested in paying for a subscription OR no one is reading any part of the publication.

Ed Kless

Thanks for researching it Bill. That is too funny! I still think the .39, .34, and .74 are really weird.

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