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The optimal price for a product gets far more NOs than the one that sells the most people.
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Key takeaways
- One day an old merchant sees him turn away customers halfway through the day when he runs out of bread.
- I'll lose all my customers." But eventually he's like, "Fine, I'll double my prices." And when he does, he loses half his customers, >> [music] >> but he makes the same money working half the time.
- And so a year later, he sold the same number of loaves he used to, but at four times [music] the price to his favorite customers because they valued the quality over the price.
Chapters
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0:00
Abschnitt 1 A baker sells the best bread in town for one copper coin.
Full transcript
Locally archived YouTube transcript with timecodes. Speakers are assigned heuristically and may be corrected editorially.
0:00A baker sells the best bread in town for one copper coin. And so he's working [music] 18 hours a day, but he's barely surviving. One day an old merchant sees him turn away customers halfway through the day when he runs out of bread. He says, "Just double your prices." And of course, [music] the baker is like, "That's impossible. I'll lose all my customers." But eventually he's like, "Fine, I'll double my prices." And when he does, he loses half his customers, >> [music] >> but he makes the same money working half the time. And with his free hours, he then experiments with new [music] recipes, and his bread gets even better, and he sells even more. And over time he keeps selling more until eventually he doubles [music] his prices again. And so a year later, he sold the same number of loaves he used to, but at four times [music] the price to his favorite customers because they valued the quality over the price. And so the merchant then said to him, "The price you charge [music] is how valuable you tell the world your work is, and the world believed you as soon [music] as you did."