Norwegian state-owned energy firm, Equinor is accused of following 'rocket and feather' pricing and exploiting consumers. As a result, it posted annual earnings of £62bn and is intending to hand £17bn of this back to shareholders. Not a lot of people know that Equinor is the largest supplier of gas to the UK, accounting for a round a quarter of all gas supplies. This is an interesting and important aspect of the current energy price crisis.

What is "rocket and feather" pricing?

Rocket and feather pricing refers to a pricing strategy that uses different pricing for two different segments of customers. It is a way for a company to optimize its pricing for different customer segments based on their willingness to pay for a product or service.

The term "rocket" refers to the high price charged to a segment of customers who are willing to pay a premium for a product or service. These customers are usually seen as more price-insensitive and are willing to pay a higher price for a product or service that they perceive to be of high quality or with unique features.

For example, a luxury car company might charge a "rocket" price for its top-of-the-line models, which are marketed to high-end consumers who are willing to pay a premium for luxury and quality.

The term "feather" refers to the lower price charged to a different segment of customers who are more price-sensitive and are looking for a more affordable option. These customers are willing to sacrifice some quality or features in order to get a lower price.

For example, a fast-food chain might charge a "feather" price for its value menu items, which are marketed to cost-conscious consumers who are looking for an affordable option.

In conclusion, the rocket and feather pricing strategy allows a company to target two different segments of customers with different pricing, which can help to optimize its revenue and profitability. By charging a high price to those who are willing to pay a premium and a lower price to those who are more price-sensitive, a company can appeal to a wider range of customers and maximize its revenue.

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