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I don't know about this. Wouldn't you piss off customers if you switch prices on them too much? The Internet tends to keep information. If someone sees that you
by hristov 16y ago
I don't know about this. Wouldn't you piss off customers if you switch prices on them too much? The Internet tends to keep information. If someone sees that your product used to cost 9.95 and now you are charging 19.95 for it, they would feel cheated paying the higher price, and probably would not pay. And you would not get a chance to explain that you were just testing price elasticity.
- aresant 16y agoThe article actually covers that: Virtually every single one of the large sites does it: "Think switching pricing on your users is is unfair or clumsy? The biggest ecommerce sites in the world have been doing it since the turn of the millennium!" Links to: http://www.wired.com/techbiz/media/news/2000/09/38622 http://www.wired.com/techbiz/media/news/2000/09/38622 If you have a lot of returning customers offer a price-drop gaurantee or similar.
- brc 16y agoThe answer is yes for many people. If you have a relatively well known product in your niche, people are going to know when you start changing the price. You have to do it on the quiet, because changing the pricing without any associated 'special offers' is the only way to know for sure. I've always wondered if I am in the right part of the price/demand curve, but it is so very hard to tell, and doing experiments like this seem to involve risk of alienating your customer base, particularly if you do a lot of repeat business with the same people.