But then an idea stuck me:
What if every customer got a different price?
I could mark the price up by 20% first, and allow them to bargain down to the original price.
Those okay with the markup buy directly, and those who aren't can negotiate a discount.
So I started thinking:
Is there a way to make more profit on Type A customers, while also convert as many Type B customers as possible?
Well, that sounds pretty counterintuitive…
Assume there are 3 types of customers:
Type A thinks the price is low, would buy at a 20% markup.
Type B finds the price fair; half of them would buy at current price, the other half would buy at 5-10% discount.
Type C thinks the price is a rip-off, won't buy at all.
Now, this is tough because:
If I raise the price:
1) More profit on Type A customers
2) Less conversions on Type B customers
If I lower the price:
1) Less profit on Type A customers
2) More conversions on Type B customers