Jerry G's Blog

“Don’t let what you can’t do stop you from doing what you can do.”- John Wooden


Understanding Fair Pricing Strategies

“You know you’re priced right when your customers complain—but buy anyway.”

John Harrison

Let’s talk about setting fair prices. Why does it matter?

If you try to sell a rock for 10 million dollars, it won’t work because the price doesn’t make sense. But if that rock is a diamond – shiny, rare and precious – then maybe someone might pay up. Jewelry tends to be expensive, so selling a diamond for 10 million dollars isn’t too far-fetched. And because that is diamond, rare, shiny and precious, that you can say is reasonably fair priced.

On the other hand, imagine selling a laptop for an inflated price like $10,000. Who would buy that? Maybe if it was top-of-the-line with high-end specifications, someone might consider paying $3-4k. Anything beyond that has little justification unless there are unique features or value additions involved.

Read the original one from Josh Kaufman here: https://personalmba.com/pricing-uncertainty-principle/

That sums up our discussion on pricing reasonably. So long folks! Have an excellent week ahead.



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About Me

I am a 11 year old kid who is homeschooled and is interested in writing. You can expect posts every Monday from me. I post about experiences, MBA and many more.