Thursday, October 03, 2019

Wrong Price


Pricing is hard. Price isn’t value. It is a point where two parties swap something *of* value. The “right” price is when both parties feel they have more value after the swap than before. Win-Win. When things are hard, we often search for an easier question. Things you can count, are the flavour equivalent of salt, fat, and sugar. It is easy to price “full-time”. It is easy to price by the hour. By cost. By thing. That isn’t value. Value is personal. In big markets the discussion falls away and you get a standard “fixed” price. This simplifies things if you trust the market. I don’t have to look at the price of each and every item I buy in the supermarket, if I trust that there is sufficient competition for businesses not to risk losing my trust. I don’t have to look at individual items if the basket price makes sense. The “conversation” is had on my behalf. The smaller the market, the more specific the item, and the less easy it is to compare, the more necessary a conversation becomes. The more necessary a relationship becomes. The more important it becomes that both parties are fully aware of what is really going on, and no one is being manipulated. There is no “right” price, but there is a wrong price if the swap is Win-Lose.



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