Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers

Episode 141 of Pricing Power dives into the tricky economics of movie theaters. Lucas explains how AMC's 'Sightline' seat-pricing experiment turned into a PR disaster, while theaters quietly shift to subscription models like AMC Stubs A-List and Regal Unlimited. Luna questions whether dynamic pricing can ever work for a night out. Along the way, they break down the classic low-margin ticket / high-margin popcorn strategy, why Tuesday is cheap night, and how studios' 50% cut forces exhibitors to get creative. A sharp look at an industry struggling to price its product in the streaming age.

#AMC #Regal #MovieTheaters #CinemaPricing #DynamicPricing #Sightline #SubscriptionPricing #StubsAList #RegalUnlimited #Concessions #PopcornMargins #TuesdayDiscounts #EntertainmentEconomics #PricingStrategy #Business #FexingoBusiness #PricingPower #BusinessPodcast

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In this episode of Pricing Power, Lucas and Luna unpack Netflix's streaming tier strategy—how the company balances ad-supported, standard, and premium plans to cater to different willingness-to-pay segments without cannibalizing revenue. They discuss the password-sharing crackdown's impact, global price discrimination (like the mobile-only plan in India), and the behavioral economics behind tier design. A concrete example: the ad tier launched in 2022 now accounts for roughly 30% of new sign-ups in mature markets. Lucas explains why Netflix's approach to pricing is less about maximizing per-subscriber revenue and more about total addressable market expansion. Includes a brief discussion of the decoy effect in the three-tier menu. Whether you're a business owner or a streamer, you'll gain insights into how to structure your own offerings.

#Netflix #StreamingPricing #TierStrategy #SubscriptionModels #AdSupported #PasswordSharing #PriceDiscrimination #DecoyEffect #ARPU #SubscriberGrowth #BusinessPodcast #FexingoBusiness #PricingPower #BehavioralEconomics #StreamingWars #AVOD #SVOD #GlobalPricing

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In this episode of Pricing Power, Lucas and Luna break down Ticketmaster's controversial dynamic pricing model. Using the Taylor Swift Eras Tour as a landmark case, they explain how Platinum pricing works, why fans felt outraged, and how Ticketmaster's near-monopoly through Live Nation gives it the power to set prices like an airline selling seats. They also touch on the antitrust lawsuit filed by the DOJ and what it means for the future of concert ticket pricing. If you've ever wondered why your ticket cost twice your friend's for the same section, this episode explains the business logic behind the chaos.

#Ticketmaster #DynamicPricing #LiveNation #ConcertTickets #ErasTour #TaylorSwift #PricingPower #ConsumerSurplus #Antitrust #Monopoly #Business #FexingoBusiness #BusinessPodcast #PricingStrategy #EntertainmentIndustry #PlatinumPricing #VerifiedFan #DemandPricing

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This episode unpacks the decoy effect—a pricing tactic that nudges you toward higher-margin options without you realizing it. Lucas and Luna start with The Economist's famous subscription experiment: when a $125 print-only option was added alongside a $59 online-only deal and a $125 print-plus-online bundle, sales of the bundle jumped dramatically. They explore why the decoy works, citing other examples like movie theater popcorn sizes, Apple's iCloud storage tiers, and Spotify's premium plans. The hosts dissect the psychology behind asymmetric dominance—how a strategically placed inferior option makes a target option look irresistible. They also discuss the ethical gray zone: is it manipulation or just smart marketing? By the end, you'll spot decoys everywhere and understand how businesses use relative comparison to shape your purchasing decisions.

#DecoyEffect #PricingPsychology #BehavioralEconomics #TheEconomist #PricingStrategy #ConsumerBehavior #AsymmetricDominance #DanAriely #PredictablyIrrational #Apple #Spotify #MovieTheaterPopcorn #Business #Economics #Marketing #FexingoBusiness #BusinessPodcast #PricingPower

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In this episode of Pricing Power Podcast, Lucas and Luna dive into Sony's PlayStation pricing strategy. They explore how Sony sells the PS5 hardware at a loss, relying on game royalties and subscriptions like PlayStation Plus to turn a profit. The discussion covers the razor-and-blades model adapted for digital ecosystems, the clever segmentation between digital-only and disc versions, and how Sony navigated inflationary pressure without immediately raising console prices. They also contrast Sony's approach with Microsoft's Game Pass strategy, and ask whether the model can hold as game development costs soar. With over 60 million PS5s sold, this case study reveals why pricing a game console is less about the box and more about the network it builds.

#Sony #PlayStation #PS5 #PricingPower #Business #Gaming #Subscription #Hardware #RazorBladeModel #MarketDominance #PS4 #GamePass #Microsoft #ConsoleWars #PricingStrategy #Ecosystem #FexingoBusiness #BusinessPodcast

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Ever wondered why the person next to you on a flight paid half what you did? In this episode, Lucas and Luna dive into the science of airline yield management. They trace its origins back to American Airlines and the Sabre system in the 1980s, explain how fare classes and capacity controls create hundreds of price points on a single flight, and reveal the algorithm that reprices seats every 10 minutes. Along the way, they unpack why dynamic pricing works so well for airlines and how travellers can game the system. Plus, a brief note on why this show stays ad-free.

#Airlines #YieldManagement #DynamicPricing #RevenueManagement #Business #FexingoBusiness #BusinessPodcast #PricingPower #Aviation #Travel #ConsumerBehavior #DataDriven #AlgorithmicPricing #AmericanAirlines #Sabre #FareClasses #PriceDiscrimination #ProfitMaximization

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In this episode of Pricing Power, Lucas and Luna dive into Costco's famously disciplined pricing strategy. They unpack the 14 percent markup cap on branded items, the 15 percent limit on Kirkland Signature, and the legendary $1.50 hot dog combo that hasn't changed price in 40 years. They explore how membership fees drive profits, why Costco treats suppliers differently, and what other retailers can learn from a model that prioritizes loyalty over margin. A concrete look at one of retail's most consistent pricing philosophies.

#Costco #PricingStrategy #Retail #KirklandSignature #MarkupCap #MembershipModel #HotDogCombo #RetailPricing #Loyalty #SupplyChain #Business #PricingPower #FexingoBusiness #BusinessPodcast #JimSinegal #RetailStrategy #LowMargin #ConsumerGoods

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In January 2023, Tesla slashed prices on the Model 3 and Model Y by up to 20 percent, igniting a price war that reshaped the electric vehicle industry. This episode examines the strategy behind the cuts: the trade-off between volume and margin, the impact on operating profits (which fell from 16 percent to below 10 percent), and how competitors like Ford, Rivian, and BYD responded. We also look at where Tesla's pricing stands in mid-2026, with margins restored to around 12 percent thanks to cost improvements. Lucas and Luna break down the numbers and extract lessons for any business considering aggressive price moves to gain market share.

#Tesla #PricingPower #Business #FexingoBusiness #BusinessPodcast #ElectricVehicles #EVMarket #PriceCuts #Margins #VolumeStrategy #ElonMusk #AutomotiveIndustry #Disruption #MarketShare #PricingStrategy #LucasAndLuna #PricingPowerPodcast #Fexingo

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In early 2024, Wendy’s mentioned 'dynamic pricing' on an earnings call, and the internet lost it. Customers imagined paying more for a Frosty at lunch rush, and within days the company had to publicly promise it would never raise prices during busy times. But here’s the twist: Wendy’s was actually testing digital menu boards that could shift prices down, not up — a discount tool for slow hours. Lucas and Luna unpack what really happened, why the backlash was so fierce, and what the episode reveals about consumer psychology around pricing fairness. They draw lessons for any business that has ever considered variable pricing for a commodity product. Plus, a quick look at how airlines and Uber successfully use the same logic while fast food struggles to sell it.

#Wendys #SurgePricing #DynamicPricing #FastFood #PricingPsychology #ConsumerBacklash #EarningsCall #DigitalMenuBoards #PricingStrategy #Business #BusinessPodcast #FexingoBusiness #PricingPower #LunchRush #Fairness #UberSurge #AirlinePricing #DemandPricing

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In this episode of Pricing Power, Lucas and Luna unpack how Starbucks sets prices for its coffee — from the $2.75 tall drip to the $7.50 venti Frappuccino. They walk through the three pillars of Starbucks' pricing strategy: the real-estate premium for prime corners, the customization surcharge that turns a latte into a $6 drink, and the loyalty program that masks price increases. Lucas explains how Starbucks uses its mobile order data to test price elasticity in real time, and why the company can raise prices year after year without losing its core customers. Luna brings in a comparison to Dunkin's simpler approach, and they debate whether Starbucks' recent price hikes are a bet on brand loyalty or a sign of weakening demand. The episode ends with a look at how Starbucks prices in China versus the US — a two-market strategy that reveals a lot about where growth will come next.

#Starbucks #CoffeePricing #PriceElasticity #LoyaltyPrograms #MobileOrdering #Customization #BrandPremium #Dunkin #ChinaMarket #USMarket #RevenueManagement #PricingStrategy #ConsumerBehavior #PremiumPricing #Business #FexingoBusiness #BusinessPodcast #PricingPowerPodcast

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