Split Block Pricing
You know how you buy a bulk pack of 200 cans of Peach Citrus Fresca for $100, but the individual cans say "not for individual sale?" Those labels are meant to prevent split block pricing.
The term itself refers to what happens when you break a larger order into smaller ones. Instead of getting a single price for the whole lot, smaller chunks get individually priced to particular buyers.
So...with that Fresca (and ignoring the label), you sell 25 cans to your cousin for $1 a can. Then you sell 50 to your friend Merrill for $0.75 a can. Another 125 goes to Fat Eddy for his annual family picnic; he paid $0.90 a can.
The price per can isn't stable across the whole supply. It varies from sale to sale. It's relatively easy to figure out though. ($1 x 25) + ($0.75 x 50) + ($0.90 x 125) = $175, which is the total amount earned by selling all the cans. Now, divide that by 200, and you get a per-can price of $0.875.
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Finance allah shmoop What does it mean to scale Well
here's a squid eyeball from space fifty miles away and
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play That is it's One thing to serve lemonade drinks
to one hundred people a week It takes one stand
a permit grocery store visits worth of supplies it's completely
Another thing Toe serve a million drinks a week for
the latter You need infrastructure trucks storage and armies of
servers to you know serve Yeah that's what they do
someone's gotta get lemonades to the people So when a
company scales it means that they have gone from a
modest few million dollars of sales to sales of maybe
one hundred million and then a billion Some like that
The skill set for the former is a vastly different
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We're looking at you well starbucks started off is just
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