Tom Brandt wrote:

> One of the reasons I do not do tier-based pricing is because of the
> resentment it breeds in customers.

Very good business sense.

> I also think that charging one customer one price and another customer a
> higher price for the identical product borders on the immoral, or at least
> unethical.

That's just silly.  How does charging one customer more than another differ
from charging one customer less than another (or are discounts immoral, too)?

Figuring out the maximum price each customer is willing to pay for a given
product is called "price discrimination", and is quite more, ethical, and
legal.  In a free market, both sides win on every transaction.  You exchange
an amount of money that is worth less to you than the product I'm offering,
which in turn is worth less to me than the amount of money you are offering.
Any deal someone else and I may wish to make is not only completely
irrelevent to the deal I make with you, it's none of your business.

That said, *advertising* the various deals I make with different customers
(e.g. via "tier-based pricing") is as foolish as advertising the minimum
amount of money I'm willing to accept for my product.


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Michael D. Hensley       | mailto:[log in to unmask]
Allegro Consultants Inc. | Visit scenic http://www.allegro.com
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