I was reading an article about Savored, a company that's helping restaurants charge different pric..., but it's wrapped up as a Groupon-style discount app. The definition of price segmentation is to charge difference prices to different customers for the same goods or services.
Most companies start out with a simple pricing structure - it's easy to explain, it's fair, and frankly establishing your business as a going concern is far more important than optimizing that last 10-20% of revenue. However, once your business is established and you're busy all the time, you should re-visit the topic of price segmentation.
I often discuss this issue with our customers as I think it's a routinely overlooked strategy for growing a photography business. Many of our customers are 100% booked, but aren't sure how to make the leap beyond self-employment. You might not think pricing has much to do with hiring, but it actually can be a huge help in finding the right way to add capacity.
In the end, all price segmentation is about producing more revenue, and more money means either more profit, or alternatively, additional capital for you to invest in growing your business.
Here are a few ideas of how to use price segmentation to help your photography business:
Price segmentation can actually increase customer satisfaction by better matching your prices to the desired service levels of your customers.
You can learn much more about price segmentation (or price discrimination) and the various ways it can strengthen and grow your business. I also highly recommend following my personal pricing guru @pricing on Twitter.
Hopefully these ideas will give you some ideas to help grow your business in new and creative ways.