Fudge Donuts

Fudge donuts in Fisher and Donaldson sell at 93p at moment.  Question: why not just sell them for 99p?  I'm quite sure that the majority of people that are willing to pay 93p will also pay 99p, in fact I'm also certain that no-one will stop purchasing them at this price, i.e the demand for the donuts is perfectly price inelastic between the values of 93p and 99p.  Apparently they sell between 250-300 of these in St Andrews alone each day, every day of the week.  Going with the midpoint of 275, that is 1,650 donuts a week.  Assuming a 6p price rise would increase their turnover by £100 a week or £5,200 a year which is fairly respectable.  My only theory for the obscure price they charge for them is that allows room for future gradual price rises.  As soon as the price rises above £1 then immediately people will stop buying them (hassle etc) so the priority of the management is to keep the price below £1.  As p>£1 then the demand because price elastic again.  By pricing them at 93p, there can still be 7 x 1p price rises as and when costs rise, i.e probably quite soon due to the high level on inflation.  Rising the price to £1 might be a good idea today but when the cost of ingredients rises and they are forced to rise the price £1.02 then that decision seems futile in the long run.  Not sure if this is a plausible theory or not, but just something that got my head thinking a bit yesterday on the way to my class (after I bought one).

Won the £5 rebuy last night at poker society for £200 which was good.  I remember in first year cashing in two events close to each other and buying my first iPod as a treat - one of the first video iPods.  I'm not going to buy anything with these winnings, probably just a Starbucks on the way back from class today.  I can't really remember any big hands, just won a few races with AK and 1010.  One suck out, 8 handed, everyone limped and shoved from the BB with 88 for about 7BBs.  A guy who ALWAYS limp calls with monsters clearly calls with AA.  5 on flop, nice.  I got my due karma about three hands later when my AA gets beaten by JJ which left with me like 2BBs. Somehow I luckboxed up to a decent stack with some Ax shoves and things.  Headsup was against a pretty drunk guy and was able to steal his blinds fairly easily.  

Just about to have some breakfast, shower and head to class.  We have a big Tesco order with all the party stuff coming later and have to get that ready.  Economics is really tough but am working through some tutorial questions tonight with a friend which should help hopefully.  I will try and write later.