Friday, September 17, 2010

Personalized Discounts

Sam's Clubs are now providing its customers with personalized discounts based on each customer's buying patterns. This is not personalized pricing in the sense that the customer reveals what they are willing to pay, but it is more like menu pricing in the sense that the more a customer purchases of a specific product, the lower the average price.

Of course, this is available to those customers who are willing to pay a higher membership fee, so there is still a profit maximizing mechanism at work.

Still, this is a great example of two-part pricing (membership fee) and menu pricing via the discounts.

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