I was online shopping for a turtleneck sweater. One was priced at $65 and another at $32. I thought to myself, I would pay at least $65 for the $32 sweater, while at the same time I wouldn’t pay more than $5 (maybe less) for the $65 sweater (I didn’t like the fit).
So if the company were pricing just for me, they could have maximized profits by raising the price of the $32 sweater to $65 or more and I probably still would have bought it (because it was worth that much to me).
Of course I’m not the only consumer on this clothing retailer’s website. But still, how is it that I can get away with paying half-price for a sweater that I would have happily paid twice as much for?
Prices for products and services sold by large companies are calculated based on data for hundreds of thousands, if not millions, of consumers.
Therefore, these prices are averages (based on aggregate supply/demand graphs). In some cases, your personal preference might be a significant outlier to the aggregate graph.
Keep your eyes peeled for these cases. Even with your income static, you can create more value for yourself based on the unique arbitrage created by your own tastes and preferences.