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
- 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?
- Either Charmin or Target messed up pricing
- This not so unreasonable one is they are trying to get rid of excess inventory of 24 pack bundles.
What is your take?