Would you make this post if they spent cash on it? Because you can see how uninteresting this would be in that situation, right?
Originally Posted by
DCFinanceinFlight
My point was very similar to C W, The price of the bottle should not be compared to the store, but more to a restaurant of club. Me personally, I will not spend $250 CASH in the sky club, but I would spend 12,500 Sky Miles.
Your original post made mention of the 2x mark up which is to be expected in any establishment not called your home.
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Emphasis mine)
This illustrates my point. The $0.02 per point valuation is meaningless in isolation. You also have to consider the value of the
price of what you're buying. Here we have an example where someone says, '
hey, $250 is too much for a bottle of Dom in a Sky Club, but I'm willing to spend 12,500 SkyMiles.' This implies that SkyMiles must be worth some amount
less than $0.02 per point to this person.
I'm not making a unilateral statement that $250 is too much for a bottle of Dom in a SkyClub — this is a personal judgement of value that depends on the situation.