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This is a great strategy for the seller. A no-name company calls and they get a quote for $10k. IBM call with exactly the same requirements and they get quoted

This is a great strategy for the seller. A no-name company calls and they get a quote for $10k. IBM call with exactly the same requirements and they get quoted $15k. Just because the salesperson thinks that IBM can afford more. I do not doubt this is typical for enterprise sales but as a customer it is very frustrating and leaves you with a constant feeling that you are probably being done-over. Not to mention that because every sale is a high-touch process starting with sales it means that a significant portion of the cost is the employment of all these non-scalable sales people. I hate the 'call us' pricing model. But I don't deny it probably works well for them.

AndrewKemendo 11y ago
Except it's a core concept of economics and is done everyday for basically everything that can be purchased. In your head you have a maximum you will pay for some good or service based on the marginal value it would give you compared to the marginal cost. The goal for a seller is to find this number for each customer and sell to them at that price. In such a case, both parties are better off in total even though there may be a very wide delta between COGS and income. [1]https://en.wikipedia.org/wiki/Marginal_utility https://en.wikipedia.org/wiki/Marginal_utility