"We can proudly use price as a signal to tell people what we think about what we

sell."

Eventually, you're going to have to tell people how much you're charging for your
services and products. There are two key things to keep in mind about pricing:
Marketing changes your pricing.
Pricing changes your marketing.
Because people form assumptions and associations based on your pricing, and your
pricing shapes what people believe about your service, it's important to be clear
about how you position yourself. Your price should be aligned with your
positioning.

What we charge says as much about who we're speaking to (who we seek to change) as
it does about what we think about ourselves.

And what you're charging shouldn't necessarily be related to cost. If you match to
the cost of materials, you're ignoring what motivates people to buy. With the
necklace example in the video, people are not merely buying pieces of metal and
stone to put on their body. They are paying for an object that helps them reinforce
the story that they tell about themselves.

Think carefully about where you have positioned yourself, and the worldviews of the
people you seek to change. What message do you want to convey about how you see
yourself? What message do others believe about your service? How can your pricing
decisions reflect this?

A few extra questions to prod your thinking:

Why does coffee at Starbucks cost more than Dunkin' Donuts? And why is it cheaper
than the third wave place in Brooklyn?

When Apple charges more for its smartphones than Android does, have they made the
right choice? After all, Android has four times the market share that Apple does.
When you give money to a charity, how do you decide how much it will cost?
How much should a wedding cost? What about the size of the check you write to the
bride and groom? Should they be related? Why?