Simple Economics

[ichauch]

Every freshman can tell you about price differentiation, yet I see only few companies which are using this concept. Yes, they introduced trial memberships, but what about geographic differentiation?
It seems most companies target the USA and Europe, while not giving any attention to other markets.

The concept of price differentiation is simple. You basically charge different prices to different group of customers for more or less the same product.
Read about it here:
http://tutor2u.net/economics/revisio...imination.html

You can easily prevent the "consumer switching" that is mentioned in the article with an IP filter for your site.
And at least the Asian markets can be safely targeted with this method, because of the language barrier. The Asian markets are pretty isolated - yet only very few companies are targeting them.

[V_RocKs]

I smoke crack rocks. This article required the smoking of only 1 rock.

[_Lush_]

Originally Posted by V_RocKs

I smoke crack rocks. This article required the smoking of only 1 rock.

[LB-69]

Originally Posted by ichauch

Every freshman can tell you about price differentiation, yet I see only few companies which are using this concept. Yes, they introduced trial memberships, but what about geographic differentiation?
It seems most companies target the USA and Europe, while not giving any attention to other markets.

The concept of price differentiation is simple. You basically charge different prices to different group of customers for more or less the same product.
Read about it here:
http://tutor2u.net/economics/revisio...imination.html

You can easily prevent the "consumer switching" that is mentioned in the article with an IP filter for your site.
And at least the Asian markets can be safely targeted with this method, because of the language barrier. The Asian markets are pretty isolated - yet only very few companies are targeting them.

You can forget about Asia except Japan, HK and Singapore customers, that anyways can pay same membership prices as EU or US customers. Some asian billings trying to work with South Korean and Chinese markets, but the CB rates are crazy, up to 5%..

[axelez]

Originally Posted by V_RocKs

I smoke crack rocks. This article required the smoking of only 1 rock.

the smoking of only 1 rock

[ichauch]

Originally Posted by LB-69

You can forget about Asia except Japan, HK and Singapore customers, that anyways can pay same membership prices as EU or US customers. Some asian billings trying to work with South Korean and Chinese markets, but the CB rates are crazy, up to 5%..

The point is to charge every customer with a prize that he can afford.
If the average internet surfer in China can only afford a $5 subscription you should offer him one.

The Chinese are all going to be millionaires soon, anyway, with the huge stock market bubble they create atm.

[LB-69]

Originally Posted by ichauch

The point is to charge every customer with a prize that he can afford.
If the average internet surfer in China can only afford a $5 subscription you should offer him one.

The Chinese are all going to be millionaires soon, anyway, with the huge stock market bubble they create atm.

The average internet surfer in China has no credit card, so it doesn't matter what price you can give him, he cant buy...some billings charging Chinese debit cards, that is interesting idea btw.

[Diligent]

Phone (Pay-per-call, not the dialer-hell again..) or SMS-billing, and that whole price differentiation thing... sounds like a plan to me!