Originally Posted by
TWA Fan 1
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...
I've seen a few of these seats being sold. I would much rather him sell 20% for $50 and give the other 80% away to people like me and make the same amount of money.