Drip Pricing

Ever play Barbie's Dream House at the beach? Building a little addition to your sand castle using some wet sand, letting it dribble out of your hand...tiny wet clumps piling up little by little until you have enough to craft a new tower for your gatehouse.

You build it to become something relatively big, little by little...drip by drip.

That's how drip pricing works as well. A retailer doesn't list a total price for what they're selling. Instead, they start with something at a relatively low price, then tack on fees and charges as you go along. Eventually, the whole cost gets much bigger.

Ever look at your cable bill? Or your cell phone bill? Or hotel bill with the $32 for parking and the $15 for "convenience fees" and the $12 for automated tip? Or buy an airline ticket (especially after you start paying for checked bags and pre-boarding privileges)? All of that falls into the drip-pricing category.

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