Is it differentiation or discrimination?
The airline Samoa Air charges passengers according to their body weight.
The price for a flight from Samoa to American Samoa is $0.92 per kilogram.
Samoa has the worlds third highest level of over weight people.
The CEO has stated “It is a pay by weight system and it is here to stay“, even though there have a been a few complaints.
There is a tremendous amount of logic to support this pricing plan.
The weight of passengers is a major cost driver for airlines.
Think about it, when we ship freight or mail, USPS or FedEx prices the package based on its weight.
Why not do the same thing for passengers?
Samoa Air has a new slogan “A kilo is a kilo is a kilo” and continues to market that this is the most fair way of pricing.
Heck, some US airline charge for two seats if you don’t fit in just one. From the airline association: if you don’t fit into a seat with an extension seatbelt and the armrests down, you will be charged for two seats or removed from the plane
Personally, I do not see this as discrimination or a violation of their rights.
But this is a VERY common form of price differentiation: Different people pay different prices for the same product or service all the time.
Do you own a Mac or a PC?
If you own a Mac, chances are that you are paying more than PC users for your online purchases. A recent study in the Economist showed that Mac users paid $20-30 more per night than PC users.
How can you adapt this strategy in your business?
In this month’s Mouster Class for Inner Circle members, I am revealing how EVERYTHING in your business revolves around price, including:
- The lies marketers tell you about needing more leads and clients. I debunk them all
- How to raise prices without losing one client
- Why profit is the only metric that matters
- 8 ways to price and increase price, no matter what your competitors charge
- The most important aspect of pricing
- Price positioning: Should you be high, low or average? The answer will amaze you
- How price affects profit more than costs
- The 2 mission critical factors to setting your prices. Without these, you are doomed to a low bank account and dwindling customer base.
- How to use the awesome power of scarcity to command high prices
- How “place” defines price.
- Differentiation versus Discrimination: Should heavy people pay more to fly?
- How not to get caught in the Bundling, unbundling, volume and multi person pricing trap
And much, much more!
But don’t dilly dally, this months Mouster Class Blueprint goes into the DSNi vault at midnight on 4/30/21.
Take care of it here: https://www.deliverservicenow.com/invitation-to-become-a-dsni-inner-circle-cast-member/
And to show that I follow my own advice, the price of being a DSNi Inner Circle member is going up on May 1, 2021 from 97 to 119.
In other words your daily investment is going from the price of a Tall Starbucks to the price of a Grande.
If you join before 5/1/21, you will be grandfathered in for life at today’s investment into your business.
