Originally Posted By: Chisel
Now suppose I am a clinic or pharmacy owner. I give 20% discount ONLY for people carrying that card. Isn't it against business wisdom to charge other people 20% more ??? Customers will run to the competition.


The 20% discount actually means that other customers pay 25% more. The idea is to encourage other customers to carry the card too. Many customers will fold and get the card. There are studies that indicate that shops with loyalty programs are more expensive even with the discount.
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