Priced to annoy

Pricing probably does more to drive people crazy than the other 3Ps of marketing. And inconsistent pricing is the worst.

I saw this sign outside Claira in Vancouver. The "Esthetics & Slimming Studio" also has a published price list which lists the Brazilian Bikini with a "Reg" price of $35, and a "Vip" price of $30. However not all services have "Vip" prices, whilst other services don't have "Reg" prices.

Leaving the fact that it should be "VIP" to one side, what does this pricing tell the customer?

1. New customers get the best deal (At least for a "Brazilian bikini")


2. "Vip" customers only get a good deal on some services


3. Some services are only available to "Vip" customers

If I was a "Vip" customer, whatever that requires, I'd be annoyed that the "New customers" can get a better price that I can.

But this establishment is far from unique. Far too many firms offer better pricing to new customers than to loyal customers. For years the TD Bank (Okay, TD Canada Trust) did this with an iPod giveaway. Customers who switched from other banks could get one, while existing customers got nothing. The marketers probably thought it was a great idea as it brought in lots of new customers, but then they did not have deal with all of the very annoyed people at the counter.

It's really simple. The more loyal I am, the better the price should be. I've started banking with the TD Bank over 40 years years ago. I'm still waiting for my iPod.