Bundling / Unbundling / Usage Based Pricing

Unbundling the dressing from the salad

Most health conscious people order a salad with dressing on the side or with no dressing. But the price quoted for a salad in any restaurant includes dressing. In other words the sald and dressing were seen as a monolith by consumers. Whether you like the dressing or not you pay for it in the bundled price. So isn’t that an ideal candidate for unbundling? That is exactly what Mama Stella’s Pizza Kitchen is doing in its San Diego Sea World outlet. The salad price does not include dressing which is sold at an additional cost of $0.75. Mama Stella has also unbundled the bread sticks from the sauce. Their bread sticks do not come with dipping sauce, you need to purchase it for a fee.

In an amusement park that serves tourists and seldom any regulars, unbundling is not a difficult task. Since people come to expect very high price and those who buy had no other option there is no pricing resistance. In fact instead of jacking up the price of Salad unbundling it helps to distribute the price increase across multiple components.

Unbundling in Mama Stella’s and other such amusement park restaurants is interesting for  another reason, the pricing for the parks. The parks practice two-part pricing, an entry fee for the park but no per ride fee.

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One thought on “Unbundling the dressing from the salad

  1. Pingback: Alternative To Unbundling The Sandwich « Iterative Path

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