That's right I said discrimination. I always wondered if there was such a thing as price discrimination. Could a retailer sell something for different prices in different areas. Think about it Could Walmart sell something in Southlake for more and then sell that same item in small low income town for less? I would think not. Although this is possible it is not likely to see this in most retail stores.
It is called First degree price discrimination and it happens all the time. This is when the price of something changes with the willingness of what someone will pay. Take eBay or craigs list. You put something out there to sell and whoever is willing to pay the most gets it. Should we try this in our local retail stores? Can you imagine haggling over a box of Cheerios! This would maximize retailers profits. Charge customers what they are willing to pay. This is when you would want to be somewhere in the North Texas area like Southlake, Keller, or Colleyville.
4 comments:
Location of a retailer stores have a huge impact in pricing a particular product this mainly based on how willing a customer would pay in a particular product or service. You will definitely not priced a product beyond their capacity to pay or else this store will not stay longer.
I have seen this at walmart within the last couple of days. I went to three different walmarts yesterday and the same product was three different prices. It happens but I think some of the pricing is up to the store manager.
Price discrimination is huge thing but some people tend to take advantage of it like myself. I will sometimes try my hardest to get something at the best price but it isn't much of a bad thing because with this economy it is almost vital for people to watch their income close. If an employee does not put a certain price change when it is required they need to give it for the lowest price.
Well it does depends on the location of the store to make a price if you put a high price store in a low income area you will not make any money money.
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