Impact Pricing Blog

Price segmentation is the act of selling the same product to different people at different prices. For example, two people sitting in coach class on a flight purchased the same experience (flying [...]

Last week, United, Delta, and American Airlines all eliminated their change fees. United led the charge, and Delta and American followed the next day. Before I speculate why, here are a few [...]

When I read Chris Anderson’s book “Free: The Future of a Radical Price,” I found it insightful and thought-provoking. His basic premise stems from a supply and demand context: Supply: Costs are [...]

Price segmentation is an incredibly powerful way to capture more value from differing levels of willingness to pay among your customers. Today, we’re going to look at a price segmentation method [...]

Today we’ll explore a fun example of price segmentation: coupons. Let’s look at their usage through the lens of our price segmentation glasses. Remember, price segmentation requires two steps: 1. [...]

Although value is a common word, in the pricing world, it has three distinct meanings. Whenever we hear a customer use the word “value”, we need to be certain which meaning they’re thinking of. [...]

Yes and no.  Surprised? Here’s why I say this. Do a quick web search for “COVID surcharge”, and you will find hundreds of stories on this new phenomenon.  Companies – especially service [...]

A friend sent me this story: An old man is running a fruit stand and displays a sign that reads 1 melon for $3, 3 melons for $10. A young man approaches and asks for one melon, for which he pays [...]

Note: read our last blog article, Value Based Buying, before reading this post. Value Based Pricing (VBP) is the process of setting a price to capture the value a potential customer will receive. [...]

Value Based pricing is the pricing technique most highly recommended by consultants and academics. The concept is simple: set a price so you capture what your customer is willing to pay. But [...]