I just listened to an episode of Tim Ferriss' podcast interviewing Seth Godin.
A part of the interview where they talked about price was interesting.
Tim talks about a friend that has a rule for any service he offers. He charges a full price or he would charge nothing. Just two options. He uses that rule to decide his price for everything. Seth also agrees and talks about how he would either charge nothing to share a lot of his wisdom via his amazing blog or he would charge a competitive full price for his AltMBA program.
Seth explains that price according to a buyer isn't just about the cost of the product. Pricing is about the story that a buyer can to tell about himself because of the product.
That is an interesting concept. I never thought of the pricing of my products as a story. I didn't think that small business owners or start-up bother with things like coming up with a pricing story. I thought it was the big companies like Nike and Apple that spend marketing budget thinking about their brand stories.
I am learning a lot.
Are you telling an interesting story with your product?