I don’t eat Wendy’s stuff often, but when I do it’s late at night, or other unpopular times. So, it would be cheaper for me. At popular times the higher prices will discourage people from going, so whoever does go will have a shorter line.
Right now they have to set a price that’s reasonable both when the place is empty, and when it is jam packed. The price they’re using is going to be right in the middle.
If they can change prices dynamically, they’ll want to slightly reduce the crowd when things are busiest, and earn more per customer, and they’ll want to draw people in when it’s empty. When it’s empty they have to pay for workers to sit around doing nothing. They make more money (or lose less money) if those workers are kept busy. To do that, they’ll want to increase traffic by lowering prices.
Yeah, no. The base price will be whatever price it is now (probably higher), then price will increase during busy times. They have zero incentive to make it cheaper, ever.
They have zero incentive to make it cheaper, ever.
Sure they do, competing against other burger joints. There’s a reason the prices are set where they are now: they’re high enough to generate a profit, but low enough to entice people to come there instead of other burger joints. But, right now those prices are static, not dynamic.
A burger joint that’s open late has to pay for staff. If they’re just sitting around without any customers they’re losing money. If they can lower prices to get people to come to them instead of Mc Donalds or Burger King at night, then they can presumably make more money.
Unpopular opinion, but I like it.
I don’t eat Wendy’s stuff often, but when I do it’s late at night, or other unpopular times. So, it would be cheaper for me. At popular times the higher prices will discourage people from going, so whoever does go will have a shorter line.
What makes you think it will be cheaper? (at any time if the day vs now)
That’s how surge pricing works.
Right now they have to set a price that’s reasonable both when the place is empty, and when it is jam packed. The price they’re using is going to be right in the middle.
If they can change prices dynamically, they’ll want to slightly reduce the crowd when things are busiest, and earn more per customer, and they’ll want to draw people in when it’s empty. When it’s empty they have to pay for workers to sit around doing nothing. They make more money (or lose less money) if those workers are kept busy. To do that, they’ll want to increase traffic by lowering prices.
Yeah, no. The base price will be whatever price it is now (probably higher), then price will increase during busy times. They have zero incentive to make it cheaper, ever.
Sure they do, competing against other burger joints. There’s a reason the prices are set where they are now: they’re high enough to generate a profit, but low enough to entice people to come there instead of other burger joints. But, right now those prices are static, not dynamic.
A burger joint that’s open late has to pay for staff. If they’re just sitting around without any customers they’re losing money. If they can lower prices to get people to come to them instead of Mc Donalds or Burger King at night, then they can presumably make more money.
Do you pray to the invisible hand of the free market before going to bed every night?