Lets call the price that maximizes profit the optimal price. Any business that prices differently suffers an ignorance loss.
When I started talking to businesses with an e-commerce component, I realized that pricing takes the back seat because of a lack of appropriate tools.
I developed a calculator to allow people to calculate what their loss relative to optimal pricing may be.
I realized that people are paying a huge ignorance loss.
The challenge businesses face is to process customer purchasing behaviour to extract information about customer’s willingness to pay.