“If everyone is equal before God, then everyone is equal before price.” (John Wanamaker)
Not all customers are created equal. Certain groups find more value in a given good than others do. A smart professional spots this and realises that pushing the same price across the market is inefficient: in some cases it leaves a good chunk of money in the pockets of customers, in other cases it prevents sales that would still be profitable at some lower price. This session explores the fascinating challenge of tailoring prices to individual valuations. One lesson is that proper price discrimination requires some input from customers– the traditional “take-it-or-leave-it” is not sufficient because it is the customer who ultimately decides whether something is cheap or expensive. Second, while there are many forms of discrimination, they fall into one of three buckets: observation, offering or mechanism. The session presents several examples to explain these labels and suggests an action plan.