This is the BBC.

In this edition of the bottom line, we're discussing pricing and why it is so often so complicated.

Hello and welcome to the programme.

Pricing, what a great topic.

Now, I think the ordinary person, when asked how much consumers should pay for a bag of sugar, would say the

fair prices, the cost of the sugar, plus a reasonable profit margin. Good companies might reasonably

get a little more, bad producers might get less, but the principle you might think is quite

simple. But in practice, it is anything but. Is one bag of sugar the same as another? Does the time at which you buy the bag matter?

Are you a regular customer buying lots or an occasional one? Do you want it now or are you happy to wait?

You quickly find that pricing is complicated. In fact, bags of sugar are perhaps the simplest example,

but if you are pricing airline tickets or insurance policies,

you really can't charge the same for everybody. Don't trust me on that, trust my guests,

as we have those two industries represented here, as we drill down into the intricacies of pricing.

Let me introduce my guests, and first up is Sophie Decker's, UK director of

EasyJet, the low-cost airline. And actually Sophie EasyJet is the biggest airline in terms of numbers

of passengers carried now, right? It is. Yes, it's the UK's largest airline. Yeah, but of course

you're not taking them as far as British Airways, so it's more short haul than. Yes, it is, yeah.

Now, what is your current role involved?

My current role is a mix of things, really.

So I look after the commercial side of EasyJet in the UK, so the revenue,

but I'm also responsible for the 140 plus aircraft that we have based in the UK

and where we fly them and looking at our network and launching

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