Sunday, January 15, 2012

Beefy mispricing

Recently, I visited Culina at NTUC Fairprice Finest. They were having a Lunar New Year shabu shabu promotion, but one glance at the brochure and I could tell that something was wrong.

CNY Platter 1: Beef Shabu Shabu (1kg) = $48

CNY Platter 2: Beef Shabu Shabu (600g) + Wagyu Beef Shabu Shabu (400g) = $68

CNY Platter 3: Wagyu Beef Shabu Shabu (500g) = $88

Let's work out the unit pricing.

From CNY Platter 1, beef shabu shabu costs $48/kg. Using this unit price for CNY Platter 2, it means that wagyu beef shabu shabu costs $98/kg. But CNY Platter 3's wagyu beef shabu shabu costs a staggering $176/kg! 

So CNY Platter 3 doesn't make sense at all. Because even if I buy CNY Platter 2 and discard the beef shabu shabu, I will effectively be paying $68 for 400g of wagyu beef shabu shabu. This works out to be $170/kg, which is still cheaper than CNY Platter 3.

They either made a mistake, or they did it on purpose just to make Platter 2 more attractive and get people to buy. I wonder which is more likely.

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