Chapter 85. Pricing products by using tie-ins
Question answered in this chapter:
How does the fact that customers buy razor blades as well as razors affect the profit-maximizing price of razors?
Certain consumer-product purchases frequently result in the purchase of related products, or tie-ins. The following table shows some examples:
Using the techniques I described in Chapter 84, “Estimating a demand curve,” it’s easy to determine a demand curve for the product that’s originally purchased. You can then use Microsoft Excel Solver to determine ...