Beyond Math: Understanding the Psychology of Pricing in Startups
I will stop turning my pricing model into a math equation. I will stop turning my pricing model into a math equation. I will stop turning my pricing model into a math equation.
A big problem I’ve observed and experienced in startups is the assumption that pricing is a math problem.
It’s not.
When customers shop for your product, they do not wonder:
“Is this being sold at cost + profit?”
No.
Instead, they ask questions and analyze benefits that center around the question:
“What is the next best alternative?”
Yet again and again, I see startups in agtech set their pricing through the framework of “cost plus.”
Because we continue to see price as a math problem when it’s actually psychological.
Stop setting your price as an arbitrary number and start having a conversation about the customer value you’re delivering.
Price is a story; tell a good one.
Make something different. Make people care. Make fans, not followers.