Comment by j1elo
What you're saying is akin to someone entering a clothes shop and the store clerk asking what they work on, to gauge the T-shirt prices according to the client's salary.
What you're saying is akin to someone entering a clothes shop and the store clerk asking what they work on, to gauge the T-shirt prices according to the client's salary.
No, it's setting a price and seeing how many people will pay that price, varying it and see who will pay that. You can derive a demand curve and work out the best price to maximise your revenue. And you can do even better if you can do some price discrimination, so you can sell some to people who otherwise wouldn't be able to afford it, which still charging other more. This isn't judging someone's salary before quoting a price, it's things like charging different prices in different markets, or offering student or senior discounts, or coupons etc.