In London, stall owner sets his doughnut prices according to demand
In Camden Town, London, "Camden Cakes", a small doughnut business, has implemented a simple yet effective pricing strategy in order to make its stock last until the end of the working day.
It’s up to the customer to ask how much a doughnut costs, which can change depending on the number of customers waiting at the stand and the number of remaining doughnuts on the shelves. At the end of the day, prices can go down to as little as 3 doughnuts for £1, or even 6 if that day’s sales weren’t as high as expected. Of course, customers who buy a doughnut at the same time as a customer a second before them, are assured they will be quoted the same price, in order for the business to remain fair and ethical.
The owner explained the benefits of his pricing strategy: “If I have not sold all of my doughnuts by 7pm, I have to throw them away as it’s impossible to keep them fresh for more than one day. This system allows me to regulate doughnut sales throughout the day so that I can monitor and sell my stock more effectively. Another advantage to not displaying prices is that customers are forced to ask how much the doughnuts cost directly, and people tend to not walk away empty handed after asking!”