Catering for the Last-Minute Customer

Imagine the scenario:

The crucial part here was that Wintax were the first company listed. If I’d had the time and patience, I might have rung round and got some quotes, but the situation being as it was, I went for the first option without hesitation. I wasn’t particularly price-sensitive. Wintax got my business simply by being savvy enough to be first on the list (actually, it seems this happens because Google orders according to geographic distance, but arguably it’s still good business practice to locate near the centre of Winchester).

The book I’m reading at the moment, The Undercover Economist, contains a similar discussion pertaining to the location of coffee shops in Waterloo station. It (perhaps indirectly) seems to debunk a common myth that free markets drive down prices to near-cost levels. Sometimes people will pay a lot for something intangible, such as location or convenience. I’ll try to avoid making the above mistake again, though.