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Welcome to captive audience pricing! There are more a few companies who have this type of business, especially targeting those in institutions of all kinds. They probably are fully gone now, but when I was in college some (IRL) classes, usually the big auditorium ones, added interactivity in the form of realtime polls and quizzes with a little “clicker” device. This was of course $30 or whatever and just used some custom RF protocol to register your vote across the room. Single-source, you have to buy it to be in the class. Textbooks themselves, electronic or not, same racket. Professor is sold the book, but it’s the students who pay. (Don’t forget of course the scam of “writing your own math book” and requiring it!!) Prisons: some private company always has a deal to “supply telephone service” and charges the inmates or their families rates that are higher than international long distance used to cost. All of these things are sold to administrators who have no fiscal concerns with the service or product because the institution isn’t the one paying, so there’s zero pricing pressure. If there’s even multiple contractors in the niche, they are more incentivized to compete on sending cool freebies to the administrators, or add perks that benefit them, than they are to compete on pricing for the students/inmates/etc. like, say, Jostens might throw in “free school ID cards” which is technically “saving the school money” in order to get the yearbook contract, while making $100 a yearbook in gross profit on $150 yearbooks. Note: all numbers made up. |