GoFuckYourself.com - Adult Webmaster Forum - View Single Post - So do the majority of sites do regional pricing?

Adraco · 10-23-2009, 03:29 PM

In theory, price discrimination is all good and very effective. But it requires a few things, among them, that the ones being discriminated don't know that they are charged more for the same product or service than others. In theory you earn more this way, beacuse you can milk both the high end users, who you overcharge, because you know that they will purchase anyways. And you milk the poor ones too, because you make them pay just above your transaction costs, making just a small profit, but since they wouldn't have purchased in the first place, you're still better off having them as customers than not.

If you geobase your join/sign up now page with prices and currency for that region, you could very well get away with it. Look at how for example Winzip des it, they sell me a single license at €29.95 when I go to Winzip.com from my computer being hooked up in Europe. When accessing the same winzip.com behind HideMyIP I can get it for $29.95. Since the Euro is worth 1,5 Dollar, guess from where I will purchase?

Now, most people don't mess with IPs and if they do, they mostly just get one to hide behind, so they get a new one but for the same region as they are already in. Since most Google Robots are based in the US they will come with an American IP number. So the Google cache will tell on you, there the user can see the US prices since it's accessed and cached from the Continental US.

Unless you're doing a lot of sales, and I mean numerous, I wouldn't worry about it. Stick with one price and make it easy for yourself. If you do choose to price discriminate, guard the prices well so that they don't leak between your regions.

10-23-2009, 03:29 PM
Adraco Confirmed User Industry Role: Join Date: May 2009 Location: Onboard an airplane around the globe Posts: 3,742	In theory, price discrimination is all good and very effective. But it requires a few things, among them, that the ones being discriminated don't know that they are charged more for the same product or service than others. In theory you earn more this way, beacuse you can milk both the high end users, who you overcharge, because you know that they will purchase anyways. And you milk the poor ones too, because you make them pay just above your transaction costs, making just a small profit, but since they wouldn't have purchased in the first place, you're still better off having them as customers than not. If you geobase your join/sign up now page with prices and currency for that region, you could very well get away with it. Look at how for example Winzip des it, they sell me a single license at €29.95 when I go to Winzip.com from my computer being hooked up in Europe. When accessing the same winzip.com behind HideMyIP I can get it for $29.95. Since the Euro is worth 1,5 Dollar, guess from where I will purchase? Now, most people don't mess with IPs and if they do, they mostly just get one to hide behind, so they get a new one but for the same region as they are already in. Since most Google Robots are based in the US they will come with an American IP number. So the Google cache will tell on you, there the user can see the US prices since it's accessed and cached from the Continental US. Unless you're doing a lot of sales, and I mean numerous, I wouldn't worry about it. Stick with one price and make it easy for yourself. If you do choose to price discriminate, guard the prices well so that they don't leak between your regions.