SCRIPTURE: For who is greater, he who sits at the table, or he who serves? (Luke 22:27)
THE ENTREPRENEUR’S REFLECTION
Pricing is psychological. If you walk into a store and see a $2,000 watch next to a $10,000 watch, the $2,000 watch looks “cheap.” If you see it next to a $50 watch, it looks “expensive.”
Rory Sutherland teaches us that we do not evaluate value in absolute terms; we evaluate it in relative terms. You need to control the comparison. If you are a consultant charging $500, do not let them compare you to an employee who costs $20/hour. Compare yourself to the $50,000 mistake you are saving them from making. Context determines cash flow.
THE EXECUTION PROTOCOL
Create a Decoy: Offer a “Premium” package that is very expensive. Even if no one buys it, it makes your “Standard” package look like a bargain.
Reframe the Cost: Don’t say “$100 a month.” Say “$3 a day—less than a cup of coffee.”
The Comparison: Explicitly state what you are replacing. “This software costs $50, but it replaces a $2,000 accountant.”
