5 types of win-win price discrimination, the driving force behind prices

In order to ensure that every consumer with demand does not miss out due to price and to obtain the maximum profit, the price must be targeted and cover a wide range of people. The author of this article summarizes a set of win-win price discrimination solutions, hoping to give you some marketing ideas. enjoy~

In the face of price, all kinds of promotions pale in comparison.

Price is the powerful force that drives profits! He is directly money.

How to increase profits without increasing costs? Through pricing strategy, 0 cost.

In order to ensure that every consumer with demand does not miss out due to price and to obtain the maximum profit, the price must be targeted and cover a wide range of people .

(Luxury products are not about pricing to increase profits, the core is to increase profits through premium)

No matter how you do market research and positioning. If my products go for high-end, I won’t be able to earn money from the proletariat and may even force them to buy imitations; if I go for mid-range, I will directly lose out on the upper class’s huge profits; then I’ll sell at a low profit but in large quantities. Firstly, the profit will be low, and secondly, once the consumers become rich, I will become a memory.

So, how to price in a targeted way while covering a wide range of people?

Price discrimination , that’s the old term. Although the name is a bit unethical, it is widely used.

All of the world’s top 500 companies have adopted price discrimination, including electric power, oil, and communications companies. Since it is not convenient to price discriminate with the main brand , they use sub-brands.

In fact, traditional price discrimination is not good in modern society.

In the past, prices in the vegetable market were always determined by people, especially in the seafood section. Those who looked a little "silly" would bid higher, while those who looked like housewives would bid more appropriately. In short, we must seize every business opportunity and try our best to make the most profit.

This is traditional price discrimination, which is the same as win-win price discrimination, in that it applies "pricing based on individual needs" to the same product.

However , traditional price discrimination is unsustainable, has many negative effects, and is insulting.

"It's easy for me to find out that I've been ripped off. The price of cabbage is clearly 1 yuan per catty, but you sold it to me for 4 yuan!"

Therefore, in order to maximize profits and achieve sustainability , we should set prices like this - engage in price discrimination in a win-win manner .

In the past two years, even in second-tier cities, I have found that vegetable markets have started to clearly mark prices. Aren’t they engaging in price discrimination?

Yes, it's just a different approach, and it still has high profits and no negative impact. The same dishes are divided into high-quality, first-class, and second-class products, and priced accordingly (this is a win-win price discrimination through "intensive product types and levels", which will be discussed below)

Below, I introduce five win-win price discrimination solutions to achieve the highest profit for your products :

1. Create win-win price discrimination through " user labor ".
2. Create win-win price discrimination by " releasing opportunities ".
3. Create win-win price discrimination through " first-come-first-served order ".
4. Create win-win price discrimination through " social hierarchy ".
5. Create win-win price discrimination through " intensive product types and levels ".

1. Price discrimination that creates a win-win situation through “user labor”

If we adopt the traditional price discrimination approach of "setting prices based on personal preference", then consumers will definitely be unhappy if they spend 4 yuan to buy cabbage at 1 yuan per catty! “Unfair”, “Swindler”, “Make a scene”, “Never go again”.

So what should we do as merchants if we want high profits but also take care of consumers at different price points?

By allowing consumers to enjoy low prices, user labor is generated. At the same time, this labor must not be too complicated and easy.

In this way, consumers who buy at the original price and consumers who buy at a low price will feel psychologically balanced, and merchants can still make high profits and achieve a win-win situation.

For example, in the iQianGou app, a user wants to buy XX product but thinks it is a bit expensive, so he can invite friends, family, and neighbors to help bargain and buy the product at a very low price. Merchants get "free advertising" + profits from more sales.

User B also wants to buy product XX. He is not sensitive to price and is a straightforward user. So, he places the order directly at the original price. The merchants received a high profit on the original price.

The Aiqianggou app creates a win-win price discrimination solution through "user labor". Merchants are generally highly profitable. And price-sensitive users can buy the product at a low price. Users who are not price sensitive do not want to go through all the trouble and voluntarily buy the product at the original price. A win-win situation for all three parties.

There is also the Pinduoduo app. As long as XX people join the group, the price will be reduced immediately. If YY people join the group, the price will be reduced again.

In this way, the same product can have multiple prices, high, medium and low, due to different "user labor", capturing users of all paying abilities and achieving win-win price discrimination.

For example, a pair of skateboard shoes in an online mall costs 399 yuan. After a few days, the store wanted to increase sales and attract traffic . The price was reduced to 299 yuan. The same pair of skateboard shoes has a price difference of 100 yuan. I think any old customer would have some complaints!

Experienced stores will never do this. They will often add an additional condition to the special price. For example, collect three lottery tickets: "Me", "The Best" and "The Handsomest"; forward to your friends circle and get 100+ likes; help the store write a good slogan.

In this way, through "user labor", low prices can be taken for granted and negative effects can be eliminated.

Also, the prices on online hotel booking websites are different from the prices at the counter. If the guest is not price sensitive, then book the room directly at the counter, which is convenient and time-saving, but the original price;

If the guests are price sensitive, they will need to spend time on preparation, looking at houses online, selecting houses, booking houses, and then getting low prices. A win-win situation for all three parties.

2. Price discrimination that creates win-win outcomes by “releasing opportunities”

Directly “setting prices based on individual needs” is the most convenient, but its disadvantages are that it is unsustainable, has a large negative impact, and will also upset high-priced buyers.

Therefore, we need to release opportunities, form a low price , and retain the price-sensitive consumer groups.

At the same time, consumers who are not sensitive to prices will not be unhappy if they buy goods at original prices, because they avoid the tedious "calculating carefully" and get rid of the label of "getting a bargain". Finally, a win-win situation is formed and the maximum profit is achieved.

I always feel that too frequent promotions will make consumers feel indifferent and ultimately lead to ineffectiveness. Until a friend who runs a physical store came to consult me, and we discussed it for a long time.

In fact, promotions can be sustainable and effective. Many people are sensitive to prices, and some promotions can indirectly discriminate product prices and obtain higher profits.

Simply put, a milk tea shop has a classic milk tea that sells for 20 yuan, and has a special offer of 10 yuan every Saturday and Monday. For nearby consumers who are sensitive to price, they may wait until a special offer comes along to try the product, while consumers who are not sensitive to price will buy it on the spot.

Look at the various coupons and discount coupons of KFC , Dicos, and McDonald's , which are available all year round...

In shopping malls, there are overwhelming discounts every weekend. I have never seen such a "quiet" scene in a shopping mall.

Supermarkets often distribute "promotional bulletins" in residential areas. These bulletins are larger than newspapers and contain secret merchandise and promotional information. This is to "release opportunities" for the elderly, otherwise, they might go to the store downstairs to buy daily necessities.

However, young people who are busy every day and prefer supermarkets will still go directly to the supermarket to buy at the original price , even though they know that eggs and potatoes in supermarkets are often on sale.

Therefore, supermarkets cater to people of all ages.

Brand products like Nike have the same price across the country. If a store wants to attract new customers with low prices, it is easy to offend old customers; if an online store lowers prices to cope with competition, it is easy to offend offline stores.

Therefore, brand stores always like to use these methods, which have been proven to be effective, to reduce prices by "releasing opportunities" to achieve win-win price discrimination.

Buy 1,000 yuan and get XXX yuan for free; buy two and get one free; exclusive for old customers, store anniversary, brand day, year-end promotion, Double 11 promotion...

3. Price discrimination that creates a win-win situation through “order of precedence”

Priority privileges are valuable , and this is a consciousness deeply rooted in people's hearts.

In order to set different prices for different consumers and achieve a win-win situation in the end, we can also differentiate prices based on the release time of the products.

That’s how new mobile phone products are released. During pre-sale, the price may be 4,000 yuan. One month after the sale, the price drops to 3,600 yuan. After half a year, it may be 3,000 yuan.

There are many examples of this: ticket reservation prices and on-site prices, early and late versions of new songs, tickets ordered 2 months ago and recently ordered, the latest and past stock market analysis services, new listings and listings after a period of time (clothing, jewelry, cars, books, etc.)

4. Price discrimination that creates win-win outcomes through “social hierarchy”

Bus fare: 2 yuan for ordinary adults; free for children; 1 yuan for students and seniors; 1.6 yuan for Class A membership card; 1.2 yuan for Class B membership card.

For those who have taken the bus, isn’t this pricing unfair?

This is price discrimination caused by "social hierarchy". People with low incomes pay low prices, people with high incomes pay high prices, and people who apply for membership enjoy special prices, which is a win-win situation for all parties.

Online/offline stores, distinguishing between students and ordinary people; dividing one place into multiple areas for pricing. Profit maximization is achieved through win-win price discrimination through "social hierarchy".

There are also some price discriminations that are easy to cause controversy, such as distinguishing by household registration, gender, education level, etc.

5. Create win-win price discrimination through "intensive product categories and levels"

Products produced with the same cost can be divided into detailed categories and levels to achieve win-win price discrimination.

For example, ordinary lobsters , raised in the same pond with the same feed, will always have differences in size, shape, and liveliness. However, they are classified and priced into special, first, second, and third grade grades. This has been shown to result in higher profits.

Airplanes and trains have business class, first class and second class cabins. The cost increases slightly, but the profit increases several times. "Same flight , 4,000 yuan ticket and 600 yuan ticket."

In paid online games , with the same production cost, if you are a rich player and want to be awesome, then you can choose equipment worth 500, 1,000, 3,000 or 5,000 yuan.

If you are an ordinary player, you can also buy some equipment within 100-500 yuan; if you are a loser player, you can also experience the coolness and buy some small equipment within 10-100 yuan.

For example, the mainstream membership card system includes diamond membership, platinum membership, gold membership, silver membership, bronze membership, and ordinary membership. This six-level membership system covers everyone from the wealthy to the common people.

As long as you have the idea of ​​becoming a member, you won’t have any problem with money.

The three major telecommunications operators serve users of various professions and levels. Hundreds of calling plans available. Sometimes the only difference between packages is a text message package.

The dense variety and levels of products can highly match users, allowing consumers to spend every penny wisely.

Such a dense variety of products makes users feel particularly frustrated, but this often does not cause users to switch to other small platforms. This "collapse" exists in all three major telecom operators.

On the contrary, Internet card dealers dare not launch intensive product types and levels. Because they are still a child facing the three major telecom operators and do not have the power to hold their users back from "collapse".

For example , the same model of car can be extended into dozens of "small models" by changing the detailed configuration. Faced with dense product types and levels, as long as the customer likes it overall, the merchant will not lose the order due to details.

For example: Bentley Flying Spur has more than ten configurations, priced at 4.35 million yuan per vehicle, but the lowest configuration can also be purchased for 2.78 million yuan.

Nowadays, many content product managers often only mark a price for a large and systematic course. I admit that small circle courses are very targeted, but some content must be useless to some potential buyers. Besides, the price of a systematic course is not cheap.

Then why don’t we set the price like cars, with one main price and a few auxiliary prices ? Internet products are user-oriented.

Through " intensive product types and levels ", price discrimination is created to earn the widest range of profits and satisfy consumers at all levels.

In this regard, Procter & Gamble is also an expert. Take laundry detergent for example, the company makes 7 brands. For skin care products, there is Olay, which many friends use on a daily basis and is very down-to-earth.

But given P&G’s character, how could he give up the rich man’s money! In 1991, it acquired the high-end brand SK-2.

Conclusion

In order to ensure that every consumer with demand does not miss out due to price and to obtain the maximum profit , the price must be targeted and cover a wide range of people .

It just so happens that price discrimination can be achieved, but traditional price discrimination has many negative effects, is unsustainable, and is insulting. "It's clearly 1 yuan per pound of cabbage, but you sold it to me for 4 yuan!"

So, in order to adapt to today's society, I summarized a win-win price discrimination plan. Eliminate negative impacts, be sustainable, and achieve win-win results for all parties. There are 5 types in total, namely:

1. Create win-win price discrimination through " user labor ".
2. Create win-win price discrimination by " releasing opportunities ".
3. Create win-win price discrimination through " first-come-first-served order ".
4. Create win-win price discrimination through " social hierarchy ".
5. Create win-win price discrimination through " intensive product types and levels ".

The author of this article @朱小磊 is compiled and published by (Qinggua Media). Please indicate the author information and source when reprinting!

Product promotion services: APP promotion services, information flow advertising, advertising platform