In marketing jargon, it’s called “unbundled pricing” … charging a price for a base product and then charging separately for add-ons.
In concept, price unbundling allows suppliers to flash lower base prices to potential buyers … and enables buyers to only pay for the specific product features that they want.
The downside: unbundling highlights the price of the add-on … which folks may have previously perceived to be free. Think airlines charging for bags
Another case in point: a family member just got back from Europe …. where he was dismayed that McDonald’s was charging extra for ketchup.
For McDonald’s, it’s a way to to list a lower burger price.
For non-ketchup eater, it’s a way to save money … not paying the ‘hidden price’ for something that they don’t use.
For ketchup users?
Well, it certainly feels like Mickey D is screwing them.
Thanks to SMH for feeding the lead.
The Homa Files 
September 27, 2011 at 12:03 pm |
A couple of key thoughts on this:
– In Europe, they seem to “customize” their food to lesser degree than Americans. I have witnessed the “add-on” charging in Europe even on my first visit about 20 years ago. Americans, in contrast, have grown used to asking and receiving (without charge) all the ketchup, mustard, extra dressing, etc. as we want.
– Add-on charging is becoming increasingly popular in retail food establishments in the US. Salad dressing, through my anecdotal experience, has been seen to be the first condiment to receive restriction. I recall about 3 or 4 years ago when Panera Bread cut the included dressing in their salads. They cut the container size in half, and began including only 1 container of dressing. Needless to say, I stopped purchasing their salads when they began charging me for more dressing, I went to another local restaurant that didn’t charge.
– There is something to be said for the phenomenon on food customization. Subway, Five Guys, Salad Bars, Buffets, etc. are specifically designed for individuals to customize their food to their content. I find it curious, and ultimately detrimental, for a business to restrict the customers ability to fully enjoy their products.