Tuesday, June 15, 2010

Differentiation Pricing Startegy

Price strategy is a complex dynamic exercise. Peter at SEO Book has explained the differing strategies that can and should be applied to maximize revenue and provide value. The entire article here

Offering one price to one group, and another price to others may seem unfair. This is something you'll need to weigh up for yourself.

However, keep in mind that if the differing price points reflect different levels of value, then the customer is deciding what they value most. If they want the full service, they should expect to pay full-service prices. If they want the lowest price, they may be prepared to wait or sacrifice some features. The customer decides what they value, and votes with their cash.

And they can always say "no" :)