High-Trust Pricing

Many entrepreneurs find pricing decisions for their products and services really challenging. You’ll often hear such people asking each other, “What should I charge?” I’ve read a number of books about pricing with complex ideas on how to do it correctly. Most involved some form of testing and optimization. They all shared the same underlying assumption though: that the optimal prices are those which extract the most long-term profit. Since that’s extremely difficult to predict, testing is essential. Testing of that nature can be dreadfully boring though, and you still won’t know if your tests are accurate. Since economies fluctuate anyway, a test done one month could yield different results than if you run it a month later. I dislike that approach mainly because I find the framing too limiting. It’s a very objective model, and I have a long history of getting better results when I use subjective framing. If my reality is some kind of simulation, it seems unlikely that my simulation is programmed to train me to care about pricing optimizing by doing split tests. That seems like a rather useless skill to develop, akin to improving my telephone sanitizing skills (which admittedly aren’t very polished). I have no desire to sculpt my character into a split testing mogul. Pricing as Communication A model I like much better is to think of pricing as a form of communication. The pricing is part of the offer and inseparabl...
Source: Steve Pavlina's Personal Development Blog - Category: Psychiatry & Psychology Authors: Tags: Abundance Productivity Source Type: blogs