# Segment prices with fair fences

> Different prices for siblings, students, displaced families and veterans, regions and times of day are normal when the fence is real, easy to check and respectful. Plus Dana's rules for friends, early payers and quiet hours.

- Course: [Pricing: Set, Package and Raise Your Prices](https://productovi.com/courses/pricing.md)
- Module: When does a discount pay?
- Lesson 22/32, ~26 min
- Source: https://productovi.com/courses/pricing/segment-prices-fair-fences

## One price or many?

**Alex Tutor:** Back with Klasna's growth team. After last time's give-and-get, Leo has a bolder idea about who pays what.

**Leo:** Why one price at all? Let's charge each family what it can pay. The site knows their device, how often they visit the price page, where they come from.

**Alex Tutor:** Different prices for different groups are normal and lawful in general: student prices, sibling prices, early-booking prices. That's **segmented pricing**. What makes it fair is the **price fence**: the rule that decides who pays what.

**Alex Tutor:** A quick check on that first point.

> **Exercise:** **True or false:** charging different groups different prices, such as students or a second child, is unfair in itself.

**Alex Tutor:** A good fence is real, easy to verify and respectful. "Second child in the same family account" passes. "Visited the page three times on an expensive phone" fails all three, and in the EU a price personalised by automated decisions must be disclosed.

**Sofia:** So the problem with Leo's idea is the fence, not the different prices.

**Leo:** Fine. But nobody would ever find out.

**Alex Tutor:** Parents compare prices with each other. The first screenshot ends that.

> **Exercise:** Which price fence is real, easy to verify and respectful?

## Siblings, students, regions

**Nazar:** We have SIBLING10 already. Hanna wants a student price for adult English learners, and the EU families pay euro prices set for their market.

**Alex Tutor:** Each needs its check. Siblings: the account does it. Students: a valid student card, checked once a year, not every package. Regions: where the family lives and pays, which the payment already shows.

**Alex Tutor:** Regional prices are lawful in general, but inside the EU be careful with different terms by nationality or residence. Before giving two EU countries different prices, check the rules for that case.

**Sofia:** And the check itself shouldn't cost more than the discount.

> **Exercise:** Match each fence with a fair way to check it.

## A social discount with dignity

**Hanna:** HELP20 gives displaced and veteran families 20% off. I want to keep it. But I also want to know what it costs, and what happens when a family also has a second child.

**Alex Tutor:** A **social discount** is a choice Klasna makes and pays for, so know the cost. And the fence must respect people: one document check, no stories, no public lists, no proving it again with every package.

**Alex Tutor:** On the cheapest package per lesson, English 32 at 580, HELP20 gives 464. That still leaves 32.40 a lesson, just above the 430.77 floor.

**Alex Tutor:** Check that number yourself.

> **Exercise:** HELP20 gives displaced and veteran families 20% off. On the English 32-pack (580 UAH a lesson), what contribution per lesson is left after the tutor (390), video and AI (30) and the 2.5% fee? In UAH, to two decimals.

**Sofia:** And with SIBLING10 on top? 20% plus 10%.

> **Exercise:** HELP20 and SIBLING10 stacked on the English 32-pack: 30% off 580 UAH a lesson. What contribution per lesson is left after the tutor (390), video and AI (30) and the 2.5% fee? In UAH, to two decimals.

## Dana's rules

**Alex Tutor:** Today a different business too: Dana's own practice, where she sets every rule herself.

**Dana:** Three requests this month. A friend's colleague wants "a friend price". A learner offers to pay for the month in advance if I give 5% off. And my weekend mornings are always empty.

**Alex Tutor:** Start with the friend price. A secret discount doesn't stay secret, and then every learner wonders what the real price is. One public price, 600. If she wants to give, she gives openly: a lesson as a gift, rarely.

**Sofia:** And the 5% for paying a month ahead? What does prepayment buy her?

**Dana:** Fewer no-shows, I hope. This year I expect 21 lessons where the learner just doesn't come, and I don't charge them.

> **Exercise:** Dana expects 348 billed lessons at 600 UAH this year. If every learner paid monthly in advance at 5% off, what would the discount cost her over the year? In UAH.

## Quiet hours

**Dana:** And the empty weekend mornings? Everyone wants weekday evenings.

**Alex Tutor:** Time of day is a fence worth having, at the right moment. Today your evenings still have free slots, so a cheaper morning would mostly move learners off 600 evenings. Once the evenings are full, 540 for a Saturday or Sunday morning fills an hour that otherwise earns nothing, and it doesn't push out a 600 evening.

**Alex Tutor:** Work out what a morning lesson leaves her after tax.

> **Exercise:** Once her evenings are full, Dana plans 540 UAH for a weekend-morning lesson instead of her usual 600. What does she keep from one morning lesson after her 6% tax? In UAH, to two decimals.

**Sofia:** After her 6% tax, that's 507.60 a morning lesson against 564 in the evening.

**Alex Tutor:** And anyone can choose it, on the same terms, publicly. That's the difference between a fence and a favor.

> **Exercise:** Which of these are fair rules for Dana's practice? Select all that apply.

## Your turn: Dana's three rules

**Dana:** Help me write it down so I can send it to anyone who asks.

**Alex Tutor:** Three short rules: friends, paying ahead, weekend mornings. Each with its reason.

**Sofia:** Friendly, but firm enough that she doesn't have to negotiate every time.

**Dana:** Exactly. I teach English, I don't want to haggle.

> **Exercise:** Write Dana's three price rules for her learners (3–5 sentences): friends, paying in advance, and weekend mornings. Give each rule a short reason. Her decisions: one public price of 600 for everyone, friends included; instead of 5% off for paying a month ahead, lessons cancelled less than 24 hours ahead are paid, and paying a month ahead earns a first pick of evening slots; weekend mornings cost 540, for anyone, once her evenings are full.

> **Key ideas**
>
> - **Segmented pricing** is normal and lawful in general; the problems are undisclosed personalised prices, collusion, abuse of dominance and unfair practices. In the EU, a price personalised by automated decisions must be disclosed.
> - A good **price fence** is real, easy to verify (ideally once) and respectful: a sibling in the same account, a student card, where the family pays, a time of day, prepayment.
> - A **social discount** for displaced and veteran families is a choice with a cost: HELP20 keeps the English 32-pack at 32.40 a lesson, above the floor. Check documents once, with dignity.
> - Don't stack discounts: HELP20 + SIBLING10 takes the 32-pack to −24.15 a lesson. The larger one applies.
> - For a solo seller: one public price, a cancellation rule instead of a prepayment discount (10,440 a year for Dana), and a quiet-hours price anyone can choose, opened once the busy hours are full.

**Alex Tutor:** Next time: promotions. Why Klasna's September sale may be training families to wait, and the gap between the list price and the price Klasna actually gets.

- Previous lesson: [What a discount buys, and what it gives away](https://productovi.com/courses/pricing/what-a-discount-buys.md)
- Next lesson: [Promotions without training buyers to wait](https://productovi.com/courses/pricing/promotions-and-realized-price.md)

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