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FairPay by Richard Reisman

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CHAPTER 17

Practical Business Comparison to Conventional Methods

A Recap of Notable Pricing Strategies

Current strategies are failing us, and FairPay promises a more win–win solution. Here we consider a selection of pricing methods that are in wide use, plus some less common alternatives that have interesting features.

A fundamental problem of all conventional methods is that they do not price effectively for a value that varies from person to person and from time to time. For example:

  • Unlimited or “all you can eat” (AYCE) underprices to heavy users, and overprices to light users.

  • Set prices of any kind underprice to those who most value an item or are most able to afford it, and overprice to those who find limited value or have limited means. ...

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