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Old Mar 28, 2010 | 2:11 pm
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Originally Posted by star_world
Are you opposed to this strategy? If people are willing to buy those exit rows - or $150 beers then go for it ^
Not opposed in the least.

But all kidding aside, I was actually trying to make a serious point, namely that if you price yourself out of your market, then you end making less money.

You can sell a beer for $150 and it would strike most people as a little ridiculous. Of course, you could also price it at $25 million, for that matter.

But the price point needs to be set at a level where people will buy.

Just like there are likely to be very few takers of $150 bottles of beer, the same likely applies to sitting in a middle seat in an exit row for $50 for an hour flight.

If Smisek is really serious about making money, he would price these seats at about $10. Sure, that's a heck of a lot less than $50, except if people are really buying them.

Then it's $10 more than $50...
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