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Ask HN: Can I offer different prices to different users for the same product?

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Re: Ask HN: Can I offer different prices to different users for the same product?

#41

IANAL, but this is exactly how B2B sales works... you offer an absurdly high MSRP then offer discounts with various incentives based on completely arbitrary things, with the average purchase landing nowhere near MSRP. I'd be careful about pricing this way to consumers since states are now started to see pricing differences as discrimination. See: http://nymag.com/intelligencer/2018/02/tinder-prices-discrim...

> you offer an absurdly high MSRP then offer discounts Which is amazing. It's probably a lack of experience in B2B, but I tend to see prices as "take it or leave it", so if I see an absurly high price I go "Aight, that's a no", instead of trying to haggle. It's just so inefficient having to haggle with every vendor to get real prices for a comparison. Is the sales process anything else than just a huge money sink?

In the B2B world, nobody pays list. I've seen some incredible discounts off list price, especially when buying in quantity.

One time I was buying some software licenses. List price was $30/seat. We needed 2000 seats. Which would list at $60K. By the time it was all said and done I ended up with 3000 seats for $10K.

Re: Ask HN: Can I offer different prices to different users for the same product?

#42

IANAL, but this is exactly how B2B sales works... you offer an absurdly high MSRP then offer discounts with various incentives based on completely arbitrary things, with the average purchase landing nowhere near MSRP. I'd be careful about pricing this way to consumers since states are now started to see pricing differences as discrimination. See: http://nymag.com/intelligencer/2018/02/tinder-prices-discrim...

> you offer an absurdly high MSRP then offer discounts Which is amazing. It's probably a lack of experience in B2B, but I tend to see prices as "take it or leave it", so if I see an absurly high price I go "Aight, that's a no", instead of trying to haggle. It's just so inefficient having to haggle with every vendor to get real prices for a comparison. Is the sales process anything else than just a huge money sink?

I don't think it is unreasonable to purchase 4 or 10 seats at cost, but if you are considering buying 2 thousands, wouldn't you try to negotiate something?

Re: Ask HN: Can I offer different prices to different users for the same product?

#43

Joel Spolsky wrote a pretty in-depth article about pricing which also covers the "How Much Money Do You Have? Pricing." case which he feels is a bad strategy: https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-...

Thanks for linking. Read through, and felt it was definitely worth the time.

No problem, I'm glad you found it useful :)

Re: Ask HN: Can I offer different prices to different users for the same product?

#45
post #12

Most Enterprise vendors work that way but it always leaves a bad taste with me. When given the choice I will always go with a vendor who has clear and transparent pricing. But realistically there is probably more money made in hiding prices and haggling a lot. Just be aware that the sales cycle will be much longer.

But I think they also cater how some big companies work. They have complex approval and compliance processes, asking there to get a service that costs 149,99$ might sound weird. Of course in that case the company might have a separate department for buying things and they might be more used to quotes.
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