So, I stumbled upon this cool thing the other day while I was getting into planting some seeds in my little garden. I wanted to grow coriander, and instead of going for those fancy seed packets, I decided to try something different—I bought coriander seeds meant for cooking.
And guess what? It wasn’t only cheaper, I got at least 3x the amount of seeds compared to what you’d get in a regular seed packet.
But here’s the kicker: it’s not just about gardening; it’s about marketing too. See, companies do this thing where they sell the same product to different people at different prices. It’s all about understanding your customers and what they’re happy to pay.
So, in this case, the coriander seeds were the same, but they served two purposes—cooking and gardening. And because of that, I got a way better deal just by thinking outside the box.
It’s a common practice in economics and marketing where businesses segment their market and adjust prices accordingly to maximise profits.
Ps. it may be the case that you’re charging too little for what you’re offering. One VC recently told me that when you set up your product prices, think of an uncomfortable number… and then double that.
This, of course works only when the value offering of your product is clear.
