The price someone pays for a product or service isn’t based on how much it costs to make, how hard it was to produce, or how much the creator likes it.
That’s a tough pill to swallow.
As creators, we often spend a lot of time thinking about our costs, the effort we’ve put in, and how proud we are of our work. But the reality is, price is determined by the buyer’s perspective—not the seller’s.
The price someone is willing to pay will always be less than the perceived value they get from it. And it’s never more than what they’re able to exchange for it.
Consider concert tickets. The band may have spent hours rehearsing, traveling, and preparing, but the price of the ticket is set by what the audience is willing to pay. If fans value the experience more than the price, they’ll buy the ticket. If not, they won’t.
Take the example of a luxury watch. It might only cost a few hundred dollars to make, but it can sell for tens of thousands. Why? Because the buyer believes the watch represents more than just a timepiece—it’s a symbol of status, success, or craftsmanship. Without that belief, the watch wouldn’t command such a high price.
Now, look at the opposite end: a handmade scarf at a local market. The artisan may have spent hours weaving it, but if the buyer doesn’t feel a personal connection to the product or the price exceeds what they’re willing to spend, the sale won’t happen. The artisan's skill is undeniable, but without creating a story or a value that resonates with the buyer, it won’t translate into a transaction.
A great example is software or an app. A developer might create a tool that took months of coding, but it won’t sell unless the customer perceives it as solving a problem they’re willing to pay for. If the price is too high or the problem it solves isn’t clear enough, the sale won’t happen.
Two key takeaways here:
Empathy is key: Understanding what your customers want, need, and value is part of your work.
Craft doesn’t guarantee sales: Mastering your craft doesn’t mean people will automatically pay for it. You need to make sure your product/service speaks to the buyer’s views and needs.
Price isn’t about what it costs to make—it’s about what the customer believes it’s worth. Understand their perspective, and you’ll understand how to price your offering.✌️
Justin Hubbard
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