Quote Originally Posted by dessertrat View Post
IMO is right. Griping over ten bucks? So if it was $29.99, you'd say that was fine?
It's not that most hikers can't afford to stay at a place for motel prices. It's that they'll very often just make the decision that it's not worth it.

Think of seeing a large pizza priced at 25 bucks. It's apparently a really good pizza. However, choosing one for 11 dollars that's almost as good means you can fill your stomach with pizza on two different occasions. Many people with money limitations (and that's most people) will be drawn towards the 11 buck ones. Same deal.

Another way of looking at it: Wal-Mart makes more money than Tiffany's. There's more money towards the middle of markets than at the narrow extremes is why, hence WM's success.