Friday, January 2, 2009

Refresh your business model (with pricing)

Changing your pricing changes your story.

Lawyers with per-job pricing, instead of charging by the hour. Microsoft's potential new pricing strategy of charging for software by time (and features) used. Airlines charging to check bags (and thereby incentivizing passengers to carry-on more luggage, increasing the time taken to plane/deplane passengers).

The approach to pricing airline seats seems like a way to take an opaque market (all pricing is controlled by the airlines) to a more market-driven, transparent approach. Or perhaps speculators will gain control of the market and traveling on the holidays will suddenly become incredibly expensive?

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