A groundbreaking economic framework for understanding and pricing convenience in markets
Developed by Dillan Mori and Michael Chase, this theorem establishes that products offering superior convenience should optimize their pricing strategy based on quantifiable convenience value delivered to consumers.
Products offering superior convenience relative to alternatives should be priced to reflect the quantifiable value of that convenience to consumers.
A psychology-informed metric (PCR) that evaluates pricing decisions by comparing premiums to convenience value, with hard caps based on consumer acceptance limits: PCR = Premium ÷ Convenience Value
CV = Distance Saved + Time Saved + Effort Reduced + Risk Avoided + Brand Preference
Base convenience value from the four core factors plus brand/quality preference adjustment"A business offering superior convenience relative to competitors should optimize its Premium-to-Convenience Ratio (PCR) to maximize value capture from the quantifiable convenience it provides. Optimal pricing occurs when the convenience premium or discount (price difference relative to alternatives) reflects the full economic value delivered through distance saved, time saved, effort reduced, and risk avoided, while accounting for competitive positioning and brand loyalty factors."
The Convenience Theorem uses a sophisticated mathematical model to accurately value convenience across all product price ranges.
Where convenience value is magnified based on industry-specific product importance. Final pricing recommendations respect hard psychological premium caps based on consumer research. Results are compared against optimal PCR ranges derived from real market data including competition levels, price elasticity, and profit margins.
Optimize pricing strategies for convenient locations like airport shops, vending machines, and convenience stores.
Evaluate the economic value of different business locations and justify rent premiums.
Help consumers make rational choices by quantifying the value of convenience they receive.
Analyze competitor pricing strategies and identify market opportunities.
Analyze your pricing strategy using Premium-to-Convenience Ratio (PCR)
See the Convenience Theorem in action
$4.00 vs $1.50 outside (Premium: $2.50)
Convenience value: $45+ from time & security savings
PCR: 0.055 - Excellent Value$3.85/gal vs $3.45/gal in town (Premium: $0.40)
Convenience value: $12+ from driving savings
PCR: 0.032 - Excellent Value$5.50 vs $4.25 across street (Premium: $1.25)
Convenience value: $8+ from time & weather savings
PCR: 0.150 - Good Value
Co-Developer
Co-owner of SouthVend Vending Company and Master of Science in Finance student at the University of Notre Dame, graduating May 2026. Received a well-rounded undergraduate degree from Holy Cross College. Co-developer of the Convenience Theorem and contributed to the mathematical formalization and practical applications of convenience valuation in economic theory.
Co-Developer
Co-owner of SouthVend Vending Company and Business Analytics student at the University of Notre Dame. Received a well-rounded undergraduate degree from Holy Cross College. Co-developer of the Convenience Theorem and contributed to the mathematical formalization and practical applications of convenience valuation in economic theory.
The Convenience Theorem emerged from observations about pricing inconsistencies in convenience-based markets. Mori and Chase recognized that while spatial economics had established the importance of location in pricing, there was no standardized framework for quantifying and pricing convenience across different dimensions.
Their work builds upon established economic theories including Hotelling's spatial competition model, but introduces a novel quantitative approach to measuring convenience value through multiple factors: distance, time, effort, and risk avoidance.
Help spread awareness of the Convenience Theorem and its practical applications.