Comment by lotsofpulp
1 day ago
>When you have to "learn about my company" in order to give me pricing info, I know you're just making the price up based on what you think I can pay.
That is how 99% of sellers do business. The upper end of the price range is what the buyer can pay, the lower end is what their competitors are asking for. Some sellers are lucky to have few competitors, so they can waste more of the buyers' time trying to narrow down exactly how much they can or are willing to pay.
Which is why you shouldn't engage with those sellers and companies they represent unless you have no alternative and are truly desperate.
This is how a lot of consumer businesses are pricing now.
Then they use the same consulting firm as their competitors to set prices.
It’s how any sensible business sets prices. Your cost sets a floor, that’s all. You set the price at whatever level makes the most money.
Many prices end up being a little higher than costs, but that’s because competition drives prices down close to the floor, not because businesses set out to do that.
Why do grocery stores have coupons? It’s not because they’re charitable. It’s because coupons are a way to charge higher prices to people more willing to pay. Trying to figure out your customer’s willingness to pay and matching that with your price is nothing new or unusual. The tactics just change when the purchase is big enough to have dedicated salespeople.
That is actually price fixing and illegal. Not that in the current regulatory environment that there's likely to be enforcement.
So the college model.