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"charge too little, and people won’t use your service"

What?



Just to throw out an extreme example, I definitely wouldn't hire a wedding photographer who charges $100 for a day's worth of photography. If they have to charge that little, they probably aren't very good. And given the importance of the occasion, I want to be sure that the photos are excellent.


Pricing and adoption aren't a linear relationship, because price points also position products.

I don't know how big an effect this is in the $1-$5 range, but it extremely important in premium categories.


$5 laser eye surgery, $10 car price communicates value.




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