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	<title>Comments on: Ripped Off?  Dynamic Pricing Can Make You Feel That Way</title>
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	<description>Entrepreneurship, Startup Companies and Business Philosophy</description>
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		<title>By: Scott</title>
		<link>http://www.businesspundit.com/ripped-off-dynamic-pricing-can-make-you-feel-that-way/comment-page-1/#comment-1570</link>
		<dc:creator>Scott</dc:creator>
		<pubDate>Mon, 30 Oct 2006 18:15:34 +0000</pubDate>
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		<description>Interesting that this pricing setup (take bids, charge whatever the bidders offer) is so close to a Dutch auction (take bids, charge everyone the lowest bid that clears inventory completely), and that the Dutch auction is such a model of fairness.

Yes, the &#039;charge whatever you can get&#039; setup can be profitable on the surface, but it can cause large amounts of grief for the people who support the internal systems.  I&#039;ve spent some time at a company with recurring business; each customer had individually-set unit pricing and individual volume discount tiers.  Wow, what a headache to manage - there would have been some significant value in a more open, universal pricing model with volume discounts that could&#039;ve been stored on a one-page document instead of in a database.
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		<content:encoded><![CDATA[<p>Interesting that this pricing setup (take bids, charge whatever the bidders offer) is so close to a Dutch auction (take bids, charge everyone the lowest bid that clears inventory completely), and that the Dutch auction is such a model of fairness.</p>
<p>Yes, the &#8216;charge whatever you can get&#8217; setup can be profitable on the surface, but it can cause large amounts of grief for the people who support the internal systems.  I&#8217;ve spent some time at a company with recurring business; each customer had individually-set unit pricing and individual volume discount tiers.  Wow, what a headache to manage &#8211; there would have been some significant value in a more open, universal pricing model with volume discounts that could&#8217;ve been stored on a one-page document instead of in a database.</p>
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