About Skinnyprice

Location: 111 N. Market San Jose, CA
Phone: 1-855-777-4237
Email: HitUsUp@skinnyprice.com

We built the company that we'd want to do business with. We hope you do too.

Check out this video of our CEO telling the story of how we got started...

What is Probability Pricing™ a.k.a Variable Discounting?

Probability Pricing™, a patented pricing innovation by Skinnyprice Inc.®, that allows retailers a new way to price products.

Like other pricing innovations:

  • Priceline's "Name your own price"
  • Groupon's "Daily Deal"
  • Ebay's "Online Auction"

Probability Pricing™ is a revolutionary new pricing innovation that allows you - the customer - to self determine what you're willing to pay for a product by deciding how much time you want to spend playing a probability numbers game to get the best discount.

Our research shows us that each customer has a different price sensitivity. If you have more money than time, you're probably not going to play the game for hours waiting for a slightly better price, you might even buy at the retail price. But for those of you who want or need to find the best deal? Time Is Money: the more you play, the more opportunities you have to win the best discount!

How it works:

  1. Complete a micro-task (ReCaptcha I am not a robot, validate you watched an ad, or answer a survey question)
  2. Spin (Get a discount)
  3. Decide (Claim or Try Again)

Once claimed you are e-mailed a coupon code for physical retailers and for ecommerce you are directed to the checkout with the discount applied.

  • Play as many times as you are allowed in a day. (Spin counter)
  • Come back and play as many days as you like. (Until you get the discount you want)
  • Keep in mind… If you claim a discount but then keep playing to see if you can get better discount you will lose that current discount coupon, so decide if it's worth the gamble.

The probability of different discount amounts showing up changes depending on what prices customers are purchasing at. The algorithm is constantly adjusting to balance demand vs price to give the best discounts vs time spent deals. This allows us to offer deeper discounts than you would see in a traditional sale, while keeping the retailer in business.

Probability Pricing™ explained

First let’s explain how traditional pricing works.


Let's say wholesale cost of a product is $10

Store A sells products at MSRP (manufacturer's suggested retail price) of $30 but that means demand is lower so they sell less of them but at higher margin.

  • Wholesale: $10 store buys product × 10 products = $100
  • Retail store: sells product at $30 × 10 purchases = $300
  • Profit: $300 - $100 = $200
  • Average Price Paid: $30
  • Demand: 10 units

Store B sells products at a sale price (let's say 33% off to keep numbers easy $30 product at 33% sale is $20) but that means demand is higher so they sell more them but at lower margin. They needed to sell 50% more products than Store A to make the same profit.

  • Wholesale: $10 store buys product × 10 products = $100
  • Retail: (2× markup) store sells product $20 × 15 purchases = $300
  • Profit: $300 - $100 = $200
  • Average Price Paid: $20
  • Demand: 15 units

Stores are constantly trying to find that sweet spot of what to charge for a product price (margin) vs what will maximize demand (number of purchases)

Probability pricing works by letting the customer self determine what they're willing to pay for a product by deciding how much time/effort they want to spend playing the game to get best discount. This finds the sweet spot that will maximize the most amount of purchases but at the optimal margin.

Store C uses probability pricing and allows customer to self determine the optimal price point that will motivate a purchase.

  • 19 purchases ranging from $15 to $30 dollars.
  • Purchases made
    • $15, $16, $17, $18, $19, $20, $21, $22, $23, $24, $24, $25, $25, $25 $26, $26, $27, $28 ,$29, $30
  • $460 purchases / 19 purchases = $23 avg price
  • Wholesale: $10 × 19 = $190
  • Retail: $23 × 19 = $437
  • Profit: $437 - $190 = $247
  • Average Price Paid: $23
  • Demand: 19 units

Advantages to this pricing model

There is more demand because there are customers that are price sensitive that would not have bought in either store A or B’s model because they needed a better deal than $20 before they would be motivated to purchase. 4 extra purchases in the $15 to $19 range thus MORE DEMAND.

There are customers that are not as price sensitive and don't want to spend a lot of time playing the game and are willing to purchase at higher prices thus making Store C more margin than Store B or Store A that sell everything at one fixed price. Thus BETTER MARGINS.

This ends up being a win win for both the store and customers. Customers can get better deals than have ever have been offered by either Store A or Store B and stores have more demand and make better margins.

Now you the customer are in control of the price instead of the retailer just guessing what they think that magic sweet spot is. Probability pricing the fairest way to discover the price point that will motivate each customer to make a purchase. The expression time is money has never been more true.

Magic price point = time spent vs discount amount

What is your magic price point?

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