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Why is it illegal to offer different prices for the same service (as this article says)?
this doesn't address this case directly, but it seems to say it's only illegal if done to harm your competitors.
Keep in mind that this is secondary to finding the market that puts the greatest value on your product.
Interesting. Can you clarify a bit more? An example would really help. Thanks.
Say you were selling tickets to hear Lang Lang play the piano. You could try selling those on the corner of 3rd and Main and get $20 for them because no one you talk to (unless you get lucky) has heard of him (and you could waste a lot of time convincing them that he's great). Or you could move your booth to the more fashionable part of town and sell them in 5 minutes for $250 each.
Why is it illegal to offer different prices for the same service (as this article says)?
Read this: "PRICE DISCRIMINATION AND THE LAW" http://www.imakenews.com/strategicpricing/e_article000649775...
Why is it illegal to offer different prices for the same service (as this article says)?
It is not illegal to offer different prices. Case in point - a lowly 12 oz of Budweiser. If I buy it in a keg it costs me around 50 cents (USD)each. In the bottle it would be closer to $1. At a local bar that has good beer prices and good food it is $3.00 for draft normally, except on Thursdays it is $2 (Bisonwitches, Tucson AZ). If I go to a fancy restaurant it will likely be $4 or even as high as $6. In a free mark…
There's a difference between giving bulk discounts and selling the same product for different prices to different customers.
Earlier quoted context omitted.
Interesting. Can you clarify a bit more? An example would really help. Thanks.
Stormpulse has recently shifted from B2C to B2B. Pricing is so completely different there's no A/B test you could use to determine that. Say you were selling tickets to hear Lang Lang play the piano. You could try selling those on the corner of 3rd and Main and get $20 for them because no one you talk to (unless you get lucky) has heard of him (and you could waste a lot of time convincing them that he's great). Or yo…
Earlier quoted context omitted.
Read this: "PRICE DISCRIMINATION AND THE LAW" http://www.imakenews.com/strategicpricing/e_article000649775...
The article you linked specifies that the statute in question only applies to goods, not services. Is that applicable here?
Why is it illegal to offer different prices for the same service (as this article says)?
Read this: "PRICE DISCRIMINATION AND THE LAW" http://www.imakenews.com/strategicpricing/e_article000649775...
The article lists the very specific reasons a case may be brought, and the various defenses. I do not see how any of this is relevant to your argument that "charging different prices is illegal". I do however agree with your concept that you should try out different prices strategies.
I have been amazed in my own experience when I make a package of my products priced beyond any shade of reason (from my view, as seller) and someone goes ahead and buys it. I had a manufacturing company and the 'big' package was to buy $1200 worth of goods and it was sometimes a tough sale. We tried a new 'big' package that was priced a little over $10,000 and it was an easier sale (to bigger customers). Lesson learned - don't ever think you know what the limits are until you test them. You might think that nobody would ever pay $100 per month for your widget, when some division of a Fortune 500 company would happily pay you a $1000 per month. Try it, you may be surprised.
Why is it illegal to offer different prices for the same service (as this article says)?
Read this: "PRICE DISCRIMINATION AND THE LAW" http://www.imakenews.com/strategicpricing/e_article000649775...
My non-lawyerly reading says that you only need to worry if you're shipping physical goods for resale. And even then you have room to be OK as long as the price differences aren't creating a monopoly, and aren't enough to economically injure the people who receive a higher price.