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/ Opening

Why the Same Thing Sells for Three Prices

Customers do not pay for the object alone. They pay for the value of the object in a specific situation.

CONVENIENCE STORE$1.50Bottled water
AIRPORT$4.50Bottled water
HOTEL MINIBAR$8.00Bottled water
TAKEAWAYPrice is set by the transaction context—not only the production cost.
/ Vote

Which price is unreasonable?

Choose one—or decide that the question is incomplete.

TAKEAWAYA price cannot be judged without the customer, alternatives, and context.
/ Reveal

The offer includes hidden value

The same product can carry different value because the situation changes.

PRODUCT+ACCESS+CONVENIENCE+CERTAINTY+STATUS / EXPERIENCE−ALTERNATIVES
TAKEAWAYWillingness to pay rises when the outcome matters more or the alternatives get worse.
/ The Basics

What changes willingness to pay?

Different customers can value the same offer differently without being irrational.

OUTCOME

How valuable is the result?

URGENCY

How costly is waiting?

ALTERNATIVES

What else could solve it?

CONFIDENCE

How likely is the promise to work?

IDENTITY / STATUS

What does the choice signal?

TAKEAWAYCustomers pay for expected value relative to the next-best alternative.
/ Pricing Tools

Price communicates before the product is used

The number becomes part of the meaning of the offer.

ANCHORING

The first number shapes what feels expensive or reasonable.

BUNDLING

Combines value and makes direct comparison harder.

PREMIUM PRICING

Can signal quality, confidence, scarcity, or status.

DISCOUNTING

Reduces risk or urgency—but can teach customers to wait.

ELASTICITY

Measures how demand changes when price changes.

COMMODITIZATION

When offers look interchangeable, price becomes the easiest difference.

TAKEAWAYPrice changes demand, positioning, and expectations at the same time.
/ Team Challenge

Same bottle. Three positions.

Your product is a durable insulated bottle with identical manufacturing cost in every version.

VALUE

Broad access. Practical purchase.

MAINSTREAM

Reliable quality and design.

PREMIUM

Identity, performance, scarcity, or service.

FOR EACH: buyer · price · value story · proof required · alternative
TAKEAWAYA higher price requires a different value system—not only a nicer adjective.
/ Pressure Test

Can the offer carry the price?

A price is credible only when the rest of the system supports it.

1.What outcome improves enough to justify the difference?
2.What proof reduces the risk of paying more?
3.What alternative is the customer comparing?
4.What does the price communicate about the brand?
TAKEAWAYPremium price without proof is overreach. Discount without strategy is margin loss.
/ Example

One product, three defensible offers

The difference is not cosmetic. Each version serves a different decision.

VALUE · $18

Daily utility

Simple colors, broad retail access, leak-proof guarantee.

MAINSTREAM · $38

Reliable performance

Temperature testing, replaceable parts, better ergonomics.

PREMIUM · $85

Performance + identity

Specialized use, athlete proof, limited design, lifetime service.

TAKEAWAYPricing power comes from relevant value, credible proof, and fewer acceptable substitutes.
/ Close

Price is the number. Willingness to pay is the judgment.

The seller sets a price. The customer evaluates it against value, risk, context, and alternatives.

PRICE

What the company asks

WILLINGNESS TO PAY

What the customer believes the choice is worth

TAKEAWAYPricing is not choosing a number. It is designing and proving the value behind the number.
LESSON 4

Pricing and Willingness to Pay

Choose the presentation view. Audience shows only the teaching slides. Facilitator adds timing, scripts, prompts, answer guidance and watch-outs.

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