Re:Where did the other dollar go, Jeff?
by skybrian on Wednesday April 28, 2021 @08:10PM
(#26975826)
Different people will pay different amounts. Doing demand management like the airlines do will get closer to what people will pay.
Fortunately as consumers, we often don't have to pay as much as we'd be willing to pay, so the price is an underestimate of consumer value.
But then again, it's easy for companies to confuse the issue. How can you tell what people would be willing to pay for shipping when they are using Amazon Prime and have "free" shipping? They themselves might not know if they're getting a good deal or not.
Seeing the market reaction isn't nothing, but it doesn't tell you what would have happened if you did something different. Startup often have trouble picking a price and may never know if they did it right.
Fortunately as consumers, we often don't have to pay as much as we'd be willing to pay, so the price is an underestimate of consumer value.
But then again, it's easy for companies to confuse the issue. How can you tell what people would be willing to pay for shipping when they are using Amazon Prime and have "free" shipping? They themselves might not know if they're getting a good deal or not.
Seeing the market reaction isn't nothing, but it doesn't tell you what would have happened if you did something different. Startup often have trouble picking a price and may never know if they did it right.