"The Wedding Markup" written by Catherine Rampell on December 4th, 2013. Many people of the wedding industry get the feeling that they are being ripped off. When people call to hire people to work for their wedding. and they here it is a wedding and not something like a birthday party, they jack up their prices tremendously. They explain it as being driven by higher costs. Brides are very high maintenance when it comes to their wedding and they seem to be less flexible when it comes to the prices of their wedding. They say "You can't substitute beans with broccoli if the price of beans go up." If the bride wants beans then you have to have beans." When it comes to dresses, they have noticed that the dresses are tremendously less expensive in other colors than in white. Along with other dresses that look exactly a like but are a lot more than the other. They say that they can get away with these kinds of things spouses-to-be probably have stronger preferences for their “special day” than consumers shopping for other kinds of events do. That means they’re less price-sensitive. Charging a higher prices for a certain category of events than others is called third-degree price discrimination.
http://economix.blogs.nytimes.com/2013/12/04/the-wedding-markup/?ref=economics&_r=0
That's tricky. Most everybody wants a white wedding dress for their wedding. This is a smart move by the dress commpany. A wedding is definitely less price-sensitive.
ReplyDeleteI'm not surprised that companies make white dresses more expensive, it more traditional than a color like red and blue.
ReplyDeleteIt is definitely a smart business move but I don't think they should raise prices so high and take advantage of people who want a nice wedding
ReplyDeleteI agree, prices become higher when it is a larger more extraordinary event
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