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You move to a new town and walk into the local barbershop to get a haircut.  You sit down to get the same trim you’ve had for years, but when you go to pay the barber, he says, “That will be $700.” You respond, “Are you kidding me? I’m not paying that!”  The barber says, “Why not? That’s the price, and I delivered the service.” To which you respond,“Where does it say that I have to pay $700? I would never agree to pay that for a haircut.”  The barber replies, “Nowhere. That’s just my price.  But since you’re new to town, I’ll give you a 60 percent discount.”

Read: Reference-based pricing: where do carriers go from here?

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