Pricing Is a Game.

Your price can be (almost) anything you want it to be.

Pricing Is a Game.
Photo by Kinson Leung / Unsplash

I'm of the opinion that all assets are speculative assets – the cost of everything is, to some degree, arbitrary. There is no ledger hiding in a higher dimension we can consult that provides Capital-T Truth™ on the Real Price™ of something.

There are certain perceptions and norms around products or services that “anchor” them – but these norms can be broken. Prices are a social construct and value is subjective. Prices are not perfect, true, and objective. They are inatangible. They are subjective, socially constructed, and very, very malleable.

The utility and price of a commodity, like gold is more stable and agreed uponthan than the utility and price of a service, like logo design. There are dozens of factors we can point to in order to explain the price of gold: utility, scarcity, the past etc. – but logo design can vary between $5 to $5,000,000 despite having a similar output: a logo.

The big takeaway: Outside of commodities and highly regulated markets, your price can be whatever you want it to be, provided you can persuade the other person of its value. This is the silent secret of winning economic engines.

If you can internalize this, you will operate in an entirely different universe than 99% of business owners who are governed by this lie. To be clear: I’m not saying there aren’t beliefs or norms you would need to fight against, all I’m saying is that these norms aren’t fixed.

You could re-sell a logo you got for $5 on Fiverr for $100,000 if you wanted to.

You just need: the right wrapper, the right sales skills, and the ability to put that wrapper in front of enough people. (A wrapper is my term for the offer: the marketing, messaging, and pricing for something you want to sell – the wrapper is the reason we give someone to buy.)

Marketers refer to this as the benefit, the need, the problem, the solution etc. but all these definitions reduce to the same thing: the reason someone buys. With enough persistence, sales mastery, and a great wrapper, you can sell (almost) anything to (almost) anyone for (almost) any price you desire

The Herd Will Come For You

I’m not saying it’s easy, or simple. This is a technique reserved for sociopaths, or for very, very astute marketers, and capable salespeople. That's because this idea gets a violent response from people; it upsets their equilibrium.

Pitching high value products requires enormous self-belief, and persistence. As soon as your step out of line and demand more for your product or services, there will be 7 billion people convincing you to lower your expectations and come back down to earth.

Mediocrity is a gravitational force. Ignore those who espouse it.