Dear bro,
The richest men in the world are:
75% Entrepreneurs.
15% Investors.
7% Athletes.
3% Artists.
0% Employees.
Nobody got rich with a salary.
9-5 is a scam.
i sold dog beds for $249 when everyone charged $49
customers thanked me for those premium prices
here's the โpricing psychologyโ that prints:
i was selling to the UK market
dog beds on amazon: $29-79
competitors on shopify: $49-99
premium brands: $99-149
me: $249
everyone said:
"too expensive"
"nobody pays that"
"you'll get zero sales"
first month: 84 sales
$20,916 revenue
they were wrong
the unique positioning:
competitors marketed:
"comfortable dog bed"
"orthopedic support"
"washable cover"
all features
i marketed:
"your dog deserves the same comfort you have"
"would you sleep on a $49 mattress?"
"premium rest for premium family members"
identity.
the customer psychology:
$49 dog bed says:
"this is for a dog"
"basic necessity"
"functional purchase"
$249 dog bed says:
"this is for family member"
"premium investment"
"love expression"
different framing
different customer
the actual difference:
my product cost: $47
their product cost: $12
my product: real orthopedic foam, veterinarian designed
their product: regular foam, generic design
but here's the secret:
customers don't know the cost difference
they only know the price difference
$49 = cheap materials (they assume)
$249 = premium materials (they assume)
both assumptions true
but they can't verify
what matters is perceived value
not scientific ass claims
the review difference:
$49 dog bed reviews:
"good for the price"
"works okay"
"expected quality"
average rating: 3.8 stars
$249 dog bed reviews:
"best investment ever"
"my dog loves it"
"worth every penny"
average rating: 4.8 stars
same satisfaction level
different price context
different perception
the customer quality:
$49 customers:
- price sensitive
- compare options
- return rate: 12%
- support tickets: 4.7 per customer
- lifetime value: $49 (one purchase)
$249 customers:
- value sensitive
- trust premium
- return rate: 2%
- support tickets: 0.8 per customer
- lifetime value: $680 (repeat purchases)
the math:
$49 dog bed business:
- 1000 sales/month
- $49,000 revenue
- $37,000 cogs
- $12,000 gross profit
- -$5,880 support costs (1000 ร $5.88)
- -$5,880 returns (12% ร $49,000)
= $240 net profit
$249 dog bed business:
- 200 sales/month
- $49,800 revenue
- $9,400 cogs
- $40,400 gross profit
- -$160 support costs (200 ร $0.80)
- -$996 returns (2% ร $49,800)
= $39,244 net profit
same revenue
163x more profit
from pricing alone
the thank you emails:
this is the weird part
customers would email:
"thank you for making premium option"
"finally something worth buying"
"my dog deserves this quality"
they appreciated the high price
because it signaled quality
$49 would make them suspicious
$249 made them confident
the refund requests:
$49 price point refunds:
"doesn't look like pictures"
"quality not as expected"
"found cheaper elsewhere"
emotion: disappointed
$249 price point refunds:
"dog didn't take to it"
"sizing issue"
emotion: apologetic
they blamed themselves
not the product
giving an instantly different frame
and preserving positive word of mouth
the competitive response:
competitors saw my pricing
thought i was crazy
stayed at $49-99
good
because if they raised to $249:
- their customers would revolt
- brand positioning wrong
- quality doesn't match
but my customers at $249:
- expected premium
- received premium
- matched expectations
i grabbed the richer market share
thatโs why i won
the expansion:
year 1: just dog beds at $249
year 2: added accessories at premium pricing
- collars: $89 (market average: $29)
- leashes: $79 (market average: $24)
- toys: $49 (market average: $15)
customers bought everything
because they already crossed $249 threshold
the brand perception:
once someone pays $249 for dog bed:
$89 collar = reasonable
$79 leash = makes sense
$49 toys = actually cheap
price anchoring in action
total average order value year 2:
$249 + $89 + $79 = $417
vs competitor:
$49 + $29 + $24 = $102
4x higher aov
from premium positioning
the lesson:
race to bottom?
more like race to poverty
(unc joke check)
competitors were fighting over:
"$49 or $44?"
"free shipping or $4.99?"
meanwhile:
i was at $249
with free shipping
making actual profit
they're in red ocean (bloody competition)
i'm in blue ocean (alone at top)
all because i understood the psychology of ecom pricing:
customers don't want cheapest
they want that confidence
THAT CONVICTION
no one wants cheap doubt
they want premium trust
and would you rather:
sell 1000 at $49 for $240 profit
or
sell 200 at $249 for $39,244 profit
different games lead to different outcomes
and selling an expensive product ainโt that harder than LT
but now hereโs the current state:
i stopped running that brand in 2020
but the lessons stay the same:
premium pricing =
- better customers
- higher profit
- easier business
- more freedom
budget pricing =
- worse customers
- lower profit
- harder business
- more stress
you choose your hell
the framework:
if your product:
- solves problem
- has real quality
- serves real need
charge premium
if your product:
- is a commodity item
- has no differentiation
- is a generic solution
charge a budget
but here's a trick to make yourself expensive:
position yourself differently
own your sub category
all through small improvements:
- better photography
- better copywriting
- better packaging
- better support
same product
different presentation
and a different fucking price
- amin
(DM me โGOOGLEโโ if you want me to scale your ecom brand up with a system that applies these same principles)
El glow-up mรกs infravalorado es la inteligencia emocional, cuando dejas de reaccionar a todo, dejas de necesitar validaciรณn y empiezas a proteger tu paz, toda tu vida cambia.
@lmeghbouna es normal eso, la carga de trabajo es muy alta y los obligan a hacer eso , no hay suficientes repartidores , para q vayas a buscarlo tu al punto de recogida