The Naval Podcast – Price Discrimination: Charge Some People More

Check out Naval’s Podcast Page

This podcast clip is part of a conversation between Naval Ravikant and Babak Nivi. Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.

Key Takeaways

  • You can charge people differently based on their propensity to pay
    • But – You’re legally not allowed to do this without offering them something extra
  • Business class seats usually cost 5-10x an economy seat, but it probably only costs the airline 2-3x provide it
  • Rich people are more willing to pay
    • All you have to is provide them with the “extra” which allows them to signal their wealthiness or gives them an added level of comfort
  • Price discrimination gets used a lot in enterprise software
    • The free version does almost everything the version you have to pay for does