This year’s limited edition (only 1000 issued) $400 rose gold Starbucks gift cards are already on sale in eBay. Here is what the top three “Buy Now” prices look like. If there exists a customer willing to pay $7500 for a product with a book value of $400 and indeterminate (bubble like) market value, why should you throw in free shipping?
I am not sure whether this seller will get their $7500 price but I like the way they are thinking about price realization. There is absolutely no reason to throw in a freebie when your customers are not expecting it. In this case it is highly likely the buyers compare prices in percentage instead of absolutes and see $32.21 as less than 0.5% of purchase price.
What would be intriguing about human psychology and our predictably irrational decision making is – people willing to pay $4000 for a $400 card but insist on free shipping.