> [...] there is a stepwise increase in difficulty if prices increase by $1, as long as the price was already at whatever the company’s magic number is for maximum to be put on a corporate credit card or signed for on a non-manager’s authority.
The idea of pricing in such a way as to require the least authority possible for a purchase is fascinating. I had never considered that monthly billing completely avoids administrative hurdles for otherwise equivalent costs billed up front. The real trick is figuring out what that threshold is...
You can also split your product into different skus to get around the problem. My major professor in grad school built a lab that had long stainless steel benchtops split in two sections to avoid going over the $500 per item purchasing limit that triggered an automatic and prolonged bidding process at the school.
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> [...] there is a stepwise increase in difficulty if prices increase by $1, as long as the price was already at whatever the company’s magic number is for maximum to be put on a corporate credit card or signed for on a non-manager’s authority.
The idea of pricing in such a way as to require the least authority possible for a purchase is fascinating. I had never considered that monthly billing completely avoids administrative hurdles for otherwise equivalent costs billed up front. The real trick is figuring out what that threshold is...
Oh, that's easy: in the US, it is overwhelmingly either $500 or $1,000.
You can also split your product into different skus to get around the problem. My major professor in grad school built a lab that had long stainless steel benchtops split in two sections to avoid going over the $500 per item purchasing limit that triggered an automatic and prolonged bidding process at the school.