- Whenever I visit a barber's(or to be more politically correct. hairdresser!) saloon and pay the same rate on a Sunday morning as on a weekday afternoon, I wonder about what if the barber was to apply management principles of pricing to do the following:-
- There would be price discrimination by time(charge more on Sundays/evenings)
- Each person would be charged differently as per ability to pay-the migrant on daily wages would pay less than the CEO
- There would be a membership with credits, to encourage repeated visits to that saloon, and other perks like loyalty program, and benefits like appointments through apps to minimize waiting
Ability to pay is factored in since saloon rent/wages are factored in the costing. And those who care about these costs would frequent a roadside barber or less expensive saloon. So it does not matter, and is not required i.e price discrimination as per ability to pay.
Since people usually frequent the same saloon/barber, loyalty program would entail unnecessary complexity and expenditure-something like why electronic micropayments is not taking off in India, when there is a much easier option i.e cash/notes/ which will anyways be there, why add complexity.