I did this with my Airbnb. I jacked the price up from $300 per night, what Airbnb recommended based on the neighborhood, to $930 per night and it stayed just as booked, reviews are just as good, and I make so much more.
That's an epic example! And I believe it. People forget that those with disposable income literally search by "most expensive" because it's assumed most expensive = "the best."
Yep. Exactly. The reason I came to this decision was that I myself was searching for an Airbnb in an expensive/luxury area, Muskoka, hoping for a “deal” but I couldn’t find anything for less than 27k per month.
That’s when I knew, I’ve gotta raise my price, because my Airbnb is on the outskirts of a different expensive area, but Airbnb was still pricing me cheap, way too cheap.
And you really have nothing to loose by testing the water. If there is no demand, you can switch back to a lower price.
Just like B2C - depends how competitive the market is for what you provide. The more differentiated you are, by providing unique value - the more you can charge. I led technology at an enterprise cybersecurity startup and we were able to charge a premium by having an AI solution that was miles ahead of the competition. It didn't matter than competitors were cheaper because the risk of a breach is how and costly that we could anchor our price on the value of breach-risk-reduction rather than market pricing. That didn't work for everyone - sometimes companies preferred "good enough" security bundled with a large vendor. But those that were more risk adverse would pay more for a the best-of-breed point-solution.
Very hard when one speaks about art though. I have a really rare picture that took a 26000 km trip with 16 kilos of equipment on my back to get it. Then there is the fact that the orbit of the moon is changing and within 200 there won’t be perfect diamond rings in the sky anymore . Then there is the fact that it is framed to include water , super rare. And that I was perfectly in sink with the universe and clicked exactly at the right time. on real film stock (slide film to be exact). I can look at the slide and see the florescente foam of the waves in dark metallic blue ( hard to capture on a print). I am inclined to just sell one print a year to show the value of it, but with NFT’s on the market it becomes very hard to compete. I would like to mint some of my photography eventually, but I still don’t know enough to venture there. Maybe you could do an article about Art and the new way to think about it? And give me a better idea of the thinking behind value. Beauty is a different matter of course. So you have to be famous for your work to have value in the first place? It is a struggle.
I did just that, more than doubled my price this year because what I offer is still actually very affordable, and value is worth 10x still to be honest. Since the jump in price, I'm getting better and more users, and its nothing short of awesome... premium is the way to go, break free of everyone else... Thanks for sharing mates!
I did this with my Airbnb. I jacked the price up from $300 per night, what Airbnb recommended based on the neighborhood, to $930 per night and it stayed just as booked, reviews are just as good, and I make so much more.
That's an epic example! And I believe it. People forget that those with disposable income literally search by "most expensive" because it's assumed most expensive = "the best."
Yep. Exactly. The reason I came to this decision was that I myself was searching for an Airbnb in an expensive/luxury area, Muskoka, hoping for a “deal” but I couldn’t find anything for less than 27k per month.
That’s when I knew, I’ve gotta raise my price, because my Airbnb is on the outskirts of a different expensive area, but Airbnb was still pricing me cheap, way too cheap.
And you really have nothing to loose by testing the water. If there is no demand, you can switch back to a lower price.
Easy to understand with B2C. B2B SaaS examples of 10x?
Just like B2C - depends how competitive the market is for what you provide. The more differentiated you are, by providing unique value - the more you can charge. I led technology at an enterprise cybersecurity startup and we were able to charge a premium by having an AI solution that was miles ahead of the competition. It didn't matter than competitors were cheaper because the risk of a breach is how and costly that we could anchor our price on the value of breach-risk-reduction rather than market pricing. That didn't work for everyone - sometimes companies preferred "good enough" security bundled with a large vendor. But those that were more risk adverse would pay more for a the best-of-breed point-solution.
Very hard when one speaks about art though. I have a really rare picture that took a 26000 km trip with 16 kilos of equipment on my back to get it. Then there is the fact that the orbit of the moon is changing and within 200 there won’t be perfect diamond rings in the sky anymore . Then there is the fact that it is framed to include water , super rare. And that I was perfectly in sink with the universe and clicked exactly at the right time. on real film stock (slide film to be exact). I can look at the slide and see the florescente foam of the waves in dark metallic blue ( hard to capture on a print). I am inclined to just sell one print a year to show the value of it, but with NFT’s on the market it becomes very hard to compete. I would like to mint some of my photography eventually, but I still don’t know enough to venture there. Maybe you could do an article about Art and the new way to think about it? And give me a better idea of the thinking behind value. Beauty is a different matter of course. So you have to be famous for your work to have value in the first place? It is a struggle.
Also, how much do you think people should charge for their Substack’s or you recommend tiers?
Good question! I'm curious to hear what the answer might be.
The book that taught me this years ago was "Blue Ocean Strategy" - I highly recommend it for anyone interested in this topic.
I did just that, more than doubled my price this year because what I offer is still actually very affordable, and value is worth 10x still to be honest. Since the jump in price, I'm getting better and more users, and its nothing short of awesome... premium is the way to go, break free of everyone else... Thanks for sharing mates!