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Go Away Pricing

 

DisciplinesMarketing > Pricing > Go Away Pricing

Description | Example | Discussion | See also

 

Description

If you do not want a customer's business but feel unable to refuse, price items so high that they are very likely to say no.

If, after the high price is stated, the customer still says yes, you can make a big profit.

Example

A car service garage quotes five times its normal price to non-regular customers who demand same-day service. On the occasion that the customer still says yes, the mechanics rearrange jobs and work late into the evening to catch up.

A software company quotes very high prices for custom variants of their base product. This proves a lucrative business for a small team of specialists.

Discussion

The principle of this is to either prevent disruption or otherwise make the difficulty worthwhile. It is most often found in service businesses where the limiting factor is employee time.

People agree to high prices when they are less price sensitive. This typically happens when they are desperate and when they know of no easily accessible alternative, for example when you have a monopoly or when other places are closed or full.

This principle can also be used in general negotiation, where you make a very low offer or make significant demands when you do not care whether you agree or not with the other person.

Go Away pricing is also described with more rude wording.

See also

Premium Pricing

 

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