O'Reilly logo

Innovative Pricing Strategies to Increase Profits by Daniel Marburger

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 5

If You Could Read My Mind: First-Degree Price Discrimination Strategies

Readers are probably a step or two ahead of me. Why, one may ask, does Wendy have to charge all four clients the same price? Can’t she negotiate prices with each client individually? Indeed, she probably can. If she does, Wendy is engaging in price discrimination. Price discrimination is the practice of charging different prices to different customers. Before we elaborate, let’s first identify what would not constitute price discrimination. In our simplified example, we assumed the cost of each job was identical. In the context of interior design, this isn’t a very realistic assumption. Some clients will want more elaborate design jobs than others. Consequently, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required