Imperfect substitutes

by Seth Godin
One of the driving factors in setting prices is understanding the issue of substitutes. If there are four kinds of bottled water and one is half the price of the others, guess which will generate all the sales? They are quite close to perfect substitutes, so take the cheap one. Even though all the movies at the multiplex cost $12 a seat, you can't often substitute one for another to save money.Read the full article