"Tim Cook" <z99### [at] gmailcom> wrote in message
news:4a1c4fb5$1@news.povray.org...

> As for 10% less vs. extra, let's see if I can come up with a useful
> thought experiment...
>
> Suppose you start out selling pencils for two cents each.  As time goes
> by, you find that there are two sorts of customers:  one habitually buys
> one or two, and another in large batches that are always even multiples
> of ten.  Now, when *you* order them from the factory, it's in batches of
> a thousand.  It's more paperwork, hence expense, for you to service the
> single-item buyer.  The guy who buys in bulk costs you less money.  You
> decide to encourage him to buy more from you by giving his purchase
> habit a discount.  Are you charging the singles-buyer are more than
> before?

Of course. The bulk buyer is the least likely of the two customers to change
their buying pattern in response to minor price changes.

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