Scientific Pricing

FastCompany has a fascinating article about pricing. Pricing doesn’t seem like a horribly interesting topic, until you try to set prices yourself. Back when I was running Byproducts.com, I went through a couple of different pricing models. The second model was definitely far more profitable than the first (which was a simple “cost-plus” model), but it was still not a scientifically produced model like the ones in the FastCompany article.

It drives some people batty to know that they may be quoted a different price for something than other people. But, in this age of large amounts of data, it is understandable why it makes sense for businesses to try different pricing strategies and see what works. It is well-known that Amazon has tried this (and probably still does this!)