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Old 6 Apr 2024, 08:19 PM   #33
TenFour
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Join Date: Feb 2017
Location: USA
Posts: 1,749
Quote:
I agree that it ticks off customers, but I worked in retail pricing for years and differential pricing maximises revenue. Even when and though it ticks off customers.
It may maximize revenue when the product you are selling appeals to the dumb masses, but when you are selling something to an informed niche audience who will research the choices you can't afford ticking off any customers. Your competitor that provides transparent fair pricing will be the winner. And, the customer you tick off may never come back, no matter how great your product is. Plus, those people will tell their friends interested in the same niche esoteric product. Look at what is happening here on EMD with regard to this pricing scheme. Now, you may argue, and I suspect they are, "We don't need so many niche, informed customers." "We'll make up the difference by attracting new customers." Personally, I could not live with myself selling products like that. I want the most informed and most loyal customers because my product is the best. I think that is the way to longterm value and longterm success. Frankly, I think that is what FM has done over the years, and it is sad to see them trying a new angle on pricing like this. The enshittification of tech continues.
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