Sent by Jonathan Stark on May 16th, 2017
Pricing is crazy.
On the surface, it might seem like math because prices are numbers.
But prices have none of the cold hard logic of math. There is no absolute truth. There is no correct answer.
Pricing–and by extension people’s reactions to prices—is irrational and emotional and largely unpredictable.
For the past few days, responses to my “pricing fairness” questions have been pouring in. Some were single word “yes” or “no” replies, but many were long and thoughtful explanations of the sender’s reasoning for their position on the matter.
Here’s the thing that really stood out to me:
Very very few people agree about what constitutes a “fair price”.
(A few argue persuasively that the notion of a “fair price” doesn’t even make sense in a free market system. To them, asking “Is this price fair?” is like asking “What color is Tuesday?”)
Here are two things to keep in mind as you price your products and services:
1. If you DO offer differing prices for something buyers perceive to be equivalent, you’re going to piss some people off:
2. If you DON’T offer differing prices for something buyers perceive to be equivalent, you’re going to piss some people off:
No matter what you do, your prices are going to piss some people off.
When you receive the inevitable irate email containing a question like one of those i listed above, you can do one of two things:
I strongly suggest that you pick B.