Price not only communicates value, but it’s also how we judge value.

0:00There's three wine bottles and you've got a low, medium, high. When people try it, if they're the exact same wine bottle, people still perceive the value of the expensive wine bottle as better. Now, here's the flip side. If I were to say, "Go to Chipotle." And you rung up and it was $30, you might feel like you got totally jipped. Even if Chipotle is an exceptional product, it is exceptional in relation to its price. That is the entire concept behind giving away free things that are exceptional. If you take something that's mediocre and then you make it free, people will perceive it as more valuable. On the flip side, if you need someone to be invested emotionally in order to succeed, then raising the price gets them more invested in the outcome. It's a dance between these two extremes which seem contradictory but are also both …