Thursday, October 29, 2009

Just Make It Free To Make More Profit

What if an airline gave away free tickets to anywhere it flys? What if your favorite artist gave away their CD for free? What if a cable company gave you a free HD TV? Sounds pretty good right? But what if I told you they would recapture their lost profit by selling complimentary goods at a higher price? Here is a look at a very interesting business model.




Do you think businesses should adopt this model? What companies would be best suited for this model? Do you as a consumer like this captive / optional pricing strategy?

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