Super quick post on price, because I’ve been getting questions around price recently.
…HMMM BUT HOW WILL I COMPETE ON PRICE?
This is something that I get a lot from new entrepreneurs. It usually comes in the form of a question of this type:
“Why would someone sign up for dollarshaveclub, when they can get the exact same razor from Dorco for half the price?”
Dollarshaveclub by the way is now at like 1 million subscribers. That’s 1 million customers that did not care about this seemingly sound reasoning.
Why? Because unless you’re selling widgets, purchasing decisions are NOT made in this way.
—–
“Why would you buy milk from a supermarket when you could go directly to a farm and get it for half price?”, said No one ever!
Bottomline, purchasing decisions online are determined by branding, tribe, emotional connection, convenience, and a list of other things that have little to do with price and everything to do with utility or presentation.
You don’t buy your jeans directly from China to save a couple dollars, nor do you buy the cheapest cell phone you can find.
Yes there is a certain range that people expect, but we try to be at the top of that range and build in value, rather than being at the bottom scrounging for margin.
We heard the same thing when we came out with a suite of wordpress themes for $450 each.
Folks were like, there’s no way you can sell them for $450 when you can get wordpress themes on themeforest for $45.
We sold $100k of them in the first year.
They were especially useful for a particular niche and the branding was 
.
To wrap this up, kill that noise.
If you build something that is well branded, useful, and you can communicate that utility clearly and effectively, you could sell water to a well.
And the better the branding, the more you can charge for that water.
Real talk: If no one is complaining about your price, you’re not charging enough!!!
-Haha “Selling water to a well” just reminded me of Jay : -)
