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Your Take: Unbundling & A La Carte Pricing

Posted By Jim On 11/04/2011 @ 7:23 am In Your Take | 9 Comments

I call it “a la carte” pricing, various industries all it “unbundling,” but more and more industries are breaking out how much you pay for what services when you do business with them. It was the subject of Art Pine’s article in Kiplinger’s [3] and he goes into detail about the logic of bundling and unbundling your pricing.

Personally, I like unbundling as long as I have control over what I can buy. When a hotel breaks out the price of everything on the folio, especially on things I have no input on, I find it as unnecessarily complex. It’s as if they broke out the housecleaning charges, the linen charges, the water bill, the little soaps and shampoos, and the electricity bill – as if I had a choice in how much I consumed of each. I like that airlines are charging for baggage because in theory the baggage-less people aren’t paying for the baggage-laden travelers. In reality, I think the airlines just price compete with each other and tack on the baggage fees to make the traveler (more) profitable.

What do you think about unbundling?


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[3] Art Pine’s article in Kiplinger’s: http://kiplinger.com/columns/practical-economics/archives/more-industries-adding-fees.html

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