Adding a Little Fat to the Bottom Line

That same WSJ article asked a very valid question about add-on charges: Is it better to spell them all out one by one on the bill (perhaps a soap charge next time, dear hotel chain)? This enables a marketer to keep base prices low. Or does it make more sense to bury these kinds of fees in the total product or service cost charged to consumers so that they aren’t hit in the face with each nasty extra charge. The downside here, of course, is that it’s a must to raise the total price charged.