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The Answer Is Transaction Costs
Baseball, Dollar Dogs, Apple Pie and Transaction Costs
Jun 25, 2024
Discover why baseball stadiums limit $1 hot dogs during promotional nights! It's not just about sales, but enhancing fan experience and crowd dynamics. A lively discussion ensues around the impact of such promotions on attendance. Explore how transaction costs fit into the pricing of event tickets and the changing landscape of work due to automation and AI. Plus, enjoy a sprinkle of dad humor and price comparisons for apple pies to keep things tasty!
16:30
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Quick takeaways
- Dollar Hot Dog Night illustrates how businesses use pricing strategies and promotions to enhance customer experience and increase attendance rather than just sell products.
- AI advancements are reducing transaction costs in knowledge-based work, leading to increased efficiency and significant shifts in the labor market requiring re-skilling.
Deep dives
Understanding Transaction Costs in Sales
Transaction costs are a fundamental aspect of any sales environment, particularly highlighted through the example of Dollar Hot Dog Night at baseball games. The event is not solely designed to sell hot dogs but rather to attract new fans to the game by creating value through combined ticket and food offerings. If one person were allowed to buy all the discounted hot dogs, it would eliminate the incentive for new customers to attend the games in the future, contradicting the event's purpose. This social dynamic illustrates that businesses must consider how their pricing strategies impact customer behavior and overall attendance, rather than focusing on isolated product sales.
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Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode