Archive for April 3rd, 2013

Blockbusters: Publishers still swinging for the fences …

April 3, 2013

Despite a weak economy, publishing executives are still making what many see as outrageous gambles on new manuscripts.

With double-or-nothing daring, most large media firms make outsized investments to acquire and market a small number of titles with strong hit potential, and bank on their sales to make up for middling performance in the rest of their catalogs.

image

Here’s what Prof. Anita Elberse – author of the “Dewey the Cat” case – had to say in the WSJ ….

(more…)

Gotcha: Schools copying airlines’ nickel & diming …

April 3, 2013

In recent years, airlines nave become masters at “unbundled pricing” … offering a low base fare and then charging more for bags, heavy bags, priority boarding,window seats, bad sandwiches, soft drinks, blankets and, of course, reservation changes.

According to CNN: Baggage fees alone generate more than $3.3 billion each year, and fees for reservation changes add almost $2.5 billion.

Annoying, for sure … but also a good source of revenue.

According to watchdog group ProPublica, colleges are starting to adopt the airlines’ pricing playbook.

image

Specifically, ProPublica says that student fees have become a kind of “stealth, second tuition imposed on unsuspecting families.”

And though their names can border on the comical — i.e., the “student success fee” — there’s nothing funny about how they can add up.

Such fees are on the rise on many campuses.

Here are some specifics:

(more…)

Samoa Air: Pricing by weight is the ‘concept of the future’

April 3, 2013

A couple of weeks ago – reacting to SWA charging for an overweight bag – I asked the question:

If airlines charge for overweight bags, why don’t they charge fore for overweight passengers?  After all, a pound is a pound is a pound.

See: Why don’t airlines charge more for these bags?

Specifically, I opined:

There’s a societal cost to somebody’s ample butt hanging over onto somebody else’s seat.

Here’s a novel plan: how about a base ticket price for the first 175 pounds and then $75 for each 50 pounds (or portion thereof) over the limit.

Price the human  heavyweights,well, just like the overweight bags.

Then, rent the seat belt extenders for say $20.

Profit improvement for the airlines and major step forward in the war on obesity.

As President Obama likes to say: “It’s common sense.”

I took some heat for the idea but at least one airline thinks we’re onto something.

image

According to The Guardian, Samoa Airlines the first-mover to tilt the scales in favor of fit & trim passengers.

Here’s the skinny on the Samoa Air plan …

(more…)