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“It's like heroin: You do a little and you want a little bit more. Raising prices is the easy way.” quote by James Sinegal
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“It's like heroin: You do a little and you want a little bit more. Raising prices is the easy way.”

James Sinegal

About This Quote

Source Interview: Interview with James Sinegal, Costco founder, 2015

People become addicted to incremental gains, so small increases in price can trigger a cycle of higher demand and higher prices.

In simple terms: Small rewards lead to bigger cravings.

Key Takeaway

Beware of incremental price hikes.

Themes

consumer behavior addiction pricing economics

Mood

cautious analytical

Type

observational cautionary

When to use this quote

  • retail pricing
  • subscription services
  • online marketplaces
  • marketing strategies

Key Concepts

behavioral economics price elasticity addiction cycle

Questions to Reflect On

  • How do small price changes affect perceived value?
  • Can you resist incremental price increases?
A Different Perspective

Higher prices may reduce long‑term customer loyalty.

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