Versioning: The Smart Way to Sell Information

Versioning: The Smart Way to Sell Information: In%20a%20perfect%20world%2C%20an%20information%20producer%20would%20sell%20its%20product%20to%20each%20buyer%20at%20a%20different%20price%2C%20reflecting%20the%20value%20that%20the%20different%20buyers%20place%20on%20it.%20In%20reality%2C%20though%2C%20such%20personalized%20pricing%20is%20rarely%20possible.%20For%20one%20thing%2C%20even%20in%20these%20days%20of%20cheap%20computing%2C%20it%20is%20awfully%20expensive%20to%20capture%2C%20store%2C%20and%20distribute%20data%20on%20the%20tastes%20of%20individual%20customers.%20For%20another%2C%20traditional%20sales%20channels%2C%20like%20retail%20stores%2C%20cannot%20set%20an%20array%20of%20prices%20for%20the%20same%20good.%20%28Even%20if%20they%20could%2C%20it%20would%20be%20next%20to%20impossible%20to%20get%20customers%20to%20stay%20within%20their%20intended%20pricing%20strata%u2014just%20look%20at%20all%20the%20gyrations%20airline%20customers%20go%20through%20to%20locate%20the%20cheapest%20routes.%29%20And%20finally%2C%20information%20producers%20run%20the%20risk%20of%20annoying%20or%20even%20alienating%20their%20customers%20if%20they%20charge%20different%20prices%20for%20the%20same%20product. In a perfect world, an information producer would sell its product to each buyer at a different price, reflecting the value that the different buyers place on it. In reality, though, such personalized pricing is rarely possible. For one thing, even in these days of cheap computing, it is awfully expensive to capture, store, and distribute data on the tastes of individual customers. For another, traditional sales channels, like retail stores, cannot set an array of prices for the same good. (Even if they could, it would be next to impossible to get customers to stay within their intended pricing strata—just look at all the gyrations airline customers go through to locate the cheapest routes.) And finally, information producers run the risk of annoying or even alienating their customers if they charge different prices for the same product.