The Cost Beyond a Price Tag 

What experiments in Netflix, airlines and retail can teach convenience services

Pricing used to look relatively simple. A company set a number, posted it and revisited the decision only when costs or competition forced a change. 

That model still exists, but it no longer captures how many companies think about price. Across industries, businesses are testing ways to move beyond the search for one ideal price. Some are creating product tiers. Others are experimenting with time-based discounts or algorithm-driven pricing systems. Still others are exploring personalized offers built from customer data. 

At first glance, these experiments point to a common goal: capture more revenue by aligning price with what different customers are willing to pay. 

Yet the results have been uneven. Some experiments have strengthened customer relationships. Others have sparked backlash almost overnight. 

For convenience services operators, these developments are worth watching closely. The workplace environment shares elements with both retail and hospitality. Customers make frequent, everyday purchases, often in the same breakroom or micro market week after week. 

That setting changes how pricing decisions are perceived. It also raises a practical question for operators: which pricing strategies from other industries translate well to workplace retail, and which ones do not? 

Three recent case studies offer a useful starting point.

Case study 1: Netflix

Streaming services have become a prominent example of tiered pricing. 

Netflix offers several subscription levels that vary by features such as advertising, screen access and video quality. In 2025 the company raised prices across its plans, not long after it cracked down on password sharing. The result was an increase in subscribers, and it’s easy to see how many companies followed suit after Netflix’s success.  

The importance of this approach lies less in the price change itself and more in the architecture behind it. Customers are not confronted with one take-it-or-leave-it price. Instead, they see a ladder of options that correspond to different levels of value. 

The model works because the differences are easy to understand. A lower price comes with advertising. A higher price brings additional features. 

Many industries use similar structures, including convenience services in some respects. Micro markets and vending machines typically include a mix of price points. 

Examples include:

  • Entry-price snacks and beverages 
  • Core national brands 
  • Premium drinks, fresh meals or specialty items 

The underlying principle is the same. Customers can choose based on preference and budget without forcing every product into a single price category.

The takeaway 

Price differences are easier to accept when the differences in value are visible. A premium item should signal its distinction through quality, ingredients, portion size or packaging.

A woman exploring different streaming options.

Case study 2: Wendy’s

If Netflix illustrates the logic of clear pricing tiers, the restaurant industry provides a cautionary example about how pricing experiments can be perceived. 

In early 2024, Wendy’s executives discussed plans to introduce digital menu boards that could update throughout the day. During an earnings call, the company described the technology as part of a broader strategy to manage demand and promote different menu items at different times. 

The comments were widely interpreted as a move toward surge pricing for fast food. Within hours, social media reaction turned sharply negative. Customers feared that burgers and fries would cost more during peak lunch or dinner periods. 

Wendy’s later clarified that it had no plans to raise prices during busy times and that the technology was intended to support promotions and menu flexibility. But the damage was already done, and many consumers avoided the restaurant chain entirely. 

The episode revealed how quickly pricing conversations can shift in categories built around familiar, everyday purchases. 

For convenience services operators, the parallel is close. Snacks, beverages and meals purchased at work occupy the same everyday category. Employees expect reliability from the machines or markets they use repeatedly. When customers believe a company is experimenting with prices in ways that feel opportunistic, the reaction often centers on fairness rather than economics. 

The takeaway 

Consistency and trust carries its own value. Even when prices must change, customers respond better when the adjustment feels predictable and understandable rather than reactive to demand.

Case study 3: Instacart and the limits of personalized pricing

Digital commerce platforms have pushed pricing experimentation even further by exploring individualized pricing. 

In late 2024 and 2025, Consumer Reports published findings suggesting that some Instacart shoppers were seeing different prices for the same grocery items at the same store. In tests conducted by the publication, price differences reached as high as 23 percent for certain items. The organization also reported that a majority of surveyed users opposed paying different prices than other customers for identical products. 

Instacart responded by saying the tests were part of broader pricing experiments designed to improve the platform and later indicated that it would not continue the practice in the same form. 

Regardless of the outcome, the episode highlighted a sensitive issue in retail pricing. When customers believe the same product should cost the same amount, unexplained variation can create suspicion. 

In traditional grocery stores, the shelf price acts as a public signal. Everyone sees the same number. Personalized pricing removes that shared reference point. 

Convenience services programs operate in an environment where visibility is high and communication spreads quickly. Employees often compare prices with colleagues and notice small changes over time. 

The takeaway 

Transparency matters. In environments where customers believe the same product should cost the same amount, unexplained differences can spark strong feelings. In a workplace setting, where people talk and compare, that concern is unlikely to weaken.

Broader Lessons

What the case studies ultimately reveal is not a formula but a set of tensions: between margin and relationship, between what an operator needs to charge and what a customer expects to pay, between the service promised to a facility partner and the experience felt by the person at checkout. 

Whether a price can bring in a few cents more on a transaction or whether it can reinforce the relationship that brings someone back tomorrow. In convenience services, that choice plays out thousands of times a day.

Stay Informed. Stay Ahead.

NAMA members get more than representation—they get resources. This article originally appeared in NAMA’s member-only magazine InTouch.