Source: http://irishcareerman.files.wordpress.com/2013/06/checkout.jpg
According to a Columbia Business School study, the more spendthrift a consumer is, the less likely the consumer is willing to wait in line. This may seem like common sense, but can be crucial information for firms who want to raise their profit margins. Spendthrift customers increase the profit margin. If businesses raised prices at peak times, reduced demand from relatively frugal customers leave emptier lines that will attract relatively impatient spendthrift customers.
I agree that this idea works for the sandwich business example that the article suggests where there are regular peak times, but perhaps not all businesses can benefit as much in this way. An example where a business might not benefit as much as the sandwich example might be if Samsung releases a new smartphone. If Samsung charges more for its smartphone at a higher price in the first two weeks, demand is so high that peak lines can be expected for spendthrift or frugal consumers alike. Perhaps businesses like Samsung could charge a premium at a VIP line and benefit from more of its spendthrift consumers.
Read about the article here.
Stock, Kyle. “Are You Too Rich to Wait in Line?” Bloomberg Business Week. 7 Oct. 2013. Web. 7 Oct. 2013.