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I love pricing. I was en route from the airport to my hotel when my cab got stuck on a side street. The barrier was road construction. As I sat stalled in traffic, the meter ticked up 20 cents at a time. After much frustration, I asked the driver to pull over, and got out to hike the two miles to my hotel. There was a beautiful woman at the next corner, heading in the same direction. We started chatting as we walked toward the strip.
I told her about my cab ride and she said that she was going to meet friends. Can I ask you some questions? Too many companies undervalue their products. Segmented pricing is an often-underutilized opportunity than can tremendously expand your business.
Companies need to look for customers with different degrees of willingness to pay, then find a way to charge those customers different prices. As we continued walking down the strip, she answered her phone. Based on her side of the conversation only, it was clear she was talking with a familiar client. Not one to miss an opportunity, I was ready with my own question when she completed her cal. You can create a product portfolio to capture more revenue from your market.
This woman had multiple options available for clients to select from, and the collaboration with a friend gave her a premium package to offer. Related: Four Rules for Pricing Products. Up to this point in our talk, she had been completely open.
However, I had one question I hesitated asking. These lessons apply to most business structures -- whether product- or service-based -- and across multiple industries.