Toilet Paper Price Discrimination

I saw a curious case of toilet paper price discrimination at Target. No I am not talking single ply vs. two ply.  Here it is and tell me what you see and why.

Same Charmin product – same quality and total quantity (501 sq ft). Yet the 12 pack bundle of mega ultra roll is priced $14.29 and the 24 pack bundle of ultra roll bundle is priced at $13.69.

Only reasonable explanation is those who prefer the convenience of smaller bundle (12 vs. 24) and not having to change the roll too often have higher willingness to pay.

It still seems far fetched that Charmin has done such a fine job of segmenting based on these factors.

So let us resort to unreasonable  explanations

  1. Charmin is betting on people not noticing the price difference – after all who has the time to take pictures of price tags and write blog articles about them?
  2. Either Charmin or Target  messed up pricing
  3. This not so unreasonable one is they are trying to get rid of excess inventory of 24 pack bundles.

What is your take?

3 thoughts on “Toilet Paper Price Discrimination

  1. I’m thinking the 12 pack (higher price) offers more convenience than the 24 pack. You have to change the rolls less often, so there’s some extra value — even though there is less material (i.e., 12 fewer inner cardboard rolls).

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  2. My suspicion is that it could have to do with competitor pricing. It would have been interesting to see the other packages surrounding this one as well. Maybe Charmin is willing to lose sales on the 12 because they really want to sell the 24 and therefore have it priced better in order to be more competitive with packs from other companies?

    Good catch, interesting to think through.

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