Comment by stronglikedan

7 years ago

But also, charge accordingly, if you don't have to post your prices (as your parents probably did). A lawyer is likely willing to pay a lot more for the same website than a tailor shop, and I'll gladly take both of their money.

Yes, "charge accordingly" means different things to different customers.

My parents never advertised their tailor shop, it was all "word-of-mouth" business. After the pricing jack-up, every customer got charged what my mother felt they could pay (with a very loose regard for consistency and some allowance for negotiation).

I used to think that was sketchy. It wasn't until much later that I realized that B2B enterprise sales people do that stuff ALL THE TIME even with their onerous kpi's, forecasting and fiscal quarter expectations!

  • > I used to think that was sketchy. It wasn't until much later that I realized that B2B enterprise sales people do that stuff ALL THE TIME even with their onerous kpi's, forecasting and fiscal quarter expectations!

    Depending on how it's done, it still is, and enterprise salesmen doing it doesn't make it less so. As a customer, I don't necessarily seek absolute minimum price, but I want it to be a fair price that I can agree on voluntarily - that means, I don't want to be subject of a bunch of manipulative sales techniques during pricing negotiations. Moreover, individual pricing used at scale makes it impossible to compare prices, or even develop a sense of what price is fair price. I actively prefer buying from vendors who list prices publicly, so by going the individual price route, you might be losing business of me and people like me.

    • I also prefer vendors that list prices, but when they do, it's important to remember that the list price is only the maximum price.

    •      > I don't want to be subject of a bunch of manipulative sales techniques...
      

      If the sales techniques are sufficiently manipulative, you won't actually know you're being manipulated.

      There's a reason why sales people in enterprise sales can pull in MM's per year, it's a different level than, say, retail or car sales.

  • > every customer got charged what my mother felt they could pay

    I suspect with advertising profiles and amazon purchase histories (and possibly amazon visa card applications requiring household income)... this wonderful "service" previously only available to the rich will be democratized for everyone!

The term is price discrimination.

Offering coupons through the mail, online ad codes etc. You are reaching out to different demos using different marketing techniques and offering or not offering discounts accordingly.

  • Or just show different prices to different users. Iphone users usually pay more.

    • Where? This anecdote is oft repeated with little evidence. The only I example I remember is some place getting caught doing it and having to stop because of the bad press.

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