Increase in profit. It is realized by attracting a large number of buyers with a favorable price for them. The decrease in the cost of goods is compensated by a large volume of sales.
Expansion of production. Large scales provide savings in the cost of creating products.
Increase in the number of buyers . People are always looking for affordable products. Discrimination policies are beneficial to both consumers and sellers.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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Conditions of price discrimination
Let's consider the necessary conditions for price discrimination:
Price control by the seller (a kind of monopoly).
The ability to identify different types of buyers: with their own starting (reserve) prices (among them there will be those who are ready to purchase the product at the maximum cost) or with different elasticities of demand.
Restrictions on the resale of goods by buyers who purchased them at the minimum price (the tool is most effectively used in the service sector).
Price discrimination by a monopolist is formed by it solely on the basis of its own goals and needs. Of course, unjustified overpricing is prohibited by law and is monitored by the relevant state control bodies. In Russia, this is the responsibility of the Federal Antimonopoly Service (FAS).
The company can conditionally divide consumers into groups, each of which will be sold the product at a certain price. The basis of such stratification is usually the level of income and consumer demand. It is important to correctly assess the audience, conduct competent segmentation. It is necessary to have an idea of the preferences of buyers, their age, marital status, place of residence, financial capabilities, etc.
Consumer income