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The point to take away here is not that you should give preferential treatment to frequent customers. The point is that some customers do actually look at the
by delackner 18y ago
The point to take away here is not that you should give preferential treatment to frequent customers.
The point is that some customers do actually look at the price of 'extras' and no one likes to feel they are being cheated. Charging an obviously huge markup makes you seem dishonest and makes the customer feel cheated, rightly so. Things that are obviously cheap in materials AND labor AND creativity should be sold CHEAPLY or free.
Of course some businesses have found that their target customers are completely price insensitive when it comes to the extras, and those customers end up paying absurd margins as a result.
In an age when both the bottom end of the market and the stratospheric luxury end are manufactured by neighboring (or even the same) factory in China, the "value" of an item is finally almost completely disconnected from its cost.
I wonder what would happen if prices were required to include, instead of the meaningless breakdown of price vs tax, price vs. cost (ignoring intagible costs, since it is too hard to measure them meaningfully).