Best 33 Quotes & Tweets on Pricing

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1

We really shouldn't be surprised that Google has turned their search engine into an ad engine. This is the basic, predictable playbook of monopoly power. Once the quality of the product stops mattering, because all competition has been vanquished, you raise prices. This is it.

DHH

DHH

@dhh

2

Physical monopolies (phone company, electric utility) aggregate supply and raise prices. They underpay for demand and make excess profits. Digital monopsonies (search engine, social network) aggregate demand and lower prices. They underpay for supply and make excess profits.

Naval Ravikant

Naval Ravikant

@naval

3

Whether hiring or investing, you don’t get the best deal at the best price.

Naval Ravikant

Naval Ravikant

@naval

4

Needless commitments are more wasteful than needless possessions. Possessions can be ignored, but commitments are a recurring debt that must be paid for with your time and attention. “The price of anything is the amount of life you exchange for it.” —Henry David Thoreau

James Clear

James Clear

@JamesClear

5

Another example of pricing insanity: Every day you will buy a coffee that you pee out 3 hrs later for $5. Then a few hours later, you’ll complain about how $5/mo for Slack—the way you do your work, which makes you thousands a month—is too expensive.

Andrew Wilkinson

Andrew Wilkinson

@awilkinson

6

The only way to know if someone will pay for something is to put a price on it and see if they buy it. Asking “Would you pay $25 for this?” won’t get you an answer - it’ll get you a false sense of security (or insecurity). Why? It costs nothing to say “yes”.

Jason Fried

Jason Fried

@jasonfried

7

The online course arbitrage. People will pay $10-20 for a book, but those same people will pay $1,000-2,000 for the same information in a live video format. The lesson: People want more than information. They also want inspiration, accountability and friends to learn with.

David Perell

David Perell

@david_perell

8

I did an analysis of the dead startups I invested in the past 5 years and the two most common causes are: 1/ People didn’t want X (not a problem or not good enough solution) 2/ People wanted it but weren’t willing to pay Y (low gross margin) Both totally solvable before 💀

Garry Tan

Garry Tan

@garrytan

9

Rates exert gravity. If you charge more, you’ll spend your time talking to more sophisticated clients, working in better businesses, specializing in projects close to the money. These are compounding advantages. If you charge less, similar dynamics apply.

Patrick McKenzie

Patrick McKenzie

@patio11

10

It is insane how pricing works.... Netflix charges $7/mo for unlimited video entertainment. Substack authors charge $7/mo for a newsletter. Financial research newsletters charge like $199-400/mo!

Andrew Wilkinson

Andrew Wilkinson

@awilkinson

11

Some founders fear charging their users for their product early on. I think it happens out of fear that it's premature & worry it might demotivate them. But I think it's much worse to toil on the wrong thing & waste precious minutes of your life. Use Venmo/PayPal & test!

Suhail Doshi

Suhail Doshi

@Suhail

12

I pay for 30+ software-as-a-service apps and all of them combined cost a fraction of what I pay the people who work for me. Business software is systematically under-priced.

David Perell

David Perell

@david_perell

13

Higher prices decrease the size of your market, but increase the quality of your customers.

Jack Butcher

Jack Butcher

@jackbutcher

14

In a competitive market, it is impossible to alter prices by fiat without affecting supply or demand, or both. It is that simple.

Keith Rabois

Keith Rabois

@rabois

15

The science says that a $10 product sells significantly more when priced $9.99. Yet, I prefer pricing my products in multiples of $5. A $9.99 price makes me feel as if the seller is taking advantage of a bug in my brain. I prefer if my customers don't experience that feeling.

Daniel Vassallo

Daniel Vassallo

@dvassallo

16

You can buy a lot of things but freedom isn’t one of them.

Shane Parrish

Shane Parrish

@ShaneAParrish

17

Charge more is the best advice you’ll find. If you sell consulting, you‘ll attract interesting projects. If you sell software, you can make a better product. If you sell courses, you‘ll only teach serious students. The best customers are the ones who pay the most.

David Perell

David Perell

@david_perell

18

The Golden Rule applied to marketing: 1. Explain your product how you'd like products to be explained to you. 2. Charge others as much as you'd pay yourself. 3. Create the refund policy you'd want for yourself. 4. Don't do what you'd consider a nuisance.

Daniel Vassallo

Daniel Vassallo

@dvassallo

19

20

I roll my eyes when gurus tell freelancers to “charge what you’re worth” This advice is ass backwards Price isn’t a reflection of *your* value It’s about the *value you create for customers* Don’t charge what you’re worth Find buyers who get outsized value from what you do.

Katelyn Bourgoin

Katelyn Bourgoin

@KateBour

21

To increase price, increase proof.

Jack Butcher

Jack Butcher

@jackbutcher

22

$10/month is the wrong price for most paid newsletters. The bad ones should be free. That way, the writer can maximize reach and build their audience. The good ones are worth hundreds of dollars per month because targeted, high-quality information is so rare.

David Perell

David Perell

@david_perell

23

The one tactic to fix an enormous number of problems: Raise prices.

Jack Butcher

Jack Butcher

@jackbutcher

24

How I set my prices: 1. I ask myself what I would pay based on the product description. 2. I ask myself what I would pay after using or consuming the product. 3. I pick the lower of the two, and lower it by another ~20%. And that’s the price I start with.

Daniel Vassallo

Daniel Vassallo

@dvassallo

25

Price is to value what sound is to music.

Jack Butcher

Jack Butcher

@jackbutcher

26

Unpopular opinion: I like paying for digital apps. If you’re gonna do anything ambitious, you’re going to need customer support. Good customer service saves you tons of time. The value of time saved far exceeds the cost of the app. When in doubt, pay for the app.

David Perell

David Perell

@david_perell

27

Your book might change lives, have the best testimonials, and perfect ratings. But there's a psychological limit to how much people will pay for a PDF. Pricing consumer products is almost all about psychology.

Daniel Vassallo

Daniel Vassallo

@dvassallo

28

If you sell something for $45/month and you manage to add just ONE new customer every day, by the 5th year you’ll have a $1,000,000/year business.

Daniel Vassallo

Daniel Vassallo

@dvassallo

29

Your prices reflect what you believe about your product.

Jack Butcher

Jack Butcher

@jackbutcher

30

The counterintuitive thing about some B2B startups is that some exist mainly because they charge more than competitors, not less.

Garry Tan

Garry Tan

@garrytan

31

32

Sometimes I worry that a price is so low that it’s actually too high. Know what I mean?

Jason Fried

Jason Fried

@jasonfried

33

When building digital goods: 1. Optimal price for digital goods is usually lower than physical goods. 2. Digital goods are expensive to produce but cheap to reproduce - unit cost is virtually zero. 3. Valuation of digital goods dependent on customer benefits + amount produced.

Jeff Morris Jr.

Jeff Morris Jr.

@jmj