Pricing Uncertainty Principle

What is the “Pricing Uncertainty Principle”?

“Everything you want in life has a price connected to it. There’s a price to pay if you want to make things better, a price to pay just for leaving things as they are, a price for everything.” — Harry Browne, author ofFail-Safe Investing

Key Ideas:

• The Pricing Uncertainty Principle states that all prices are arbitrary and malleable. Pricing is an executive decision. You can charge whatever you want!
• The key is being able to support the asking price for a customer to accept it. You must be able to provide a Reason Why the price is worth paying.
• Keep in mind that, in general, people prefer to pay as little as possible for what they want (with some exceptions, discussed in Social Signaling).

Questions for Consideration:

• How are you currently deciding to set your prices?
• How are you supporting that price?