Playbook / Lessons / Sales and advertising
Cash-flow businessPrice is based on value, not cost
Seth Godin lists short observations on pricing. He says price is an exchange of value but also a story, that it rests on value rather than on the cost of production, and that customers you win by being cheapest leave first when someone cheaper appears. When someone says it is too expensive, he reads that as the story not matching the price, so you may need a better story rather than a lower price.
“Price is based on value, not on the cost of production.”— Seth Godin, On pricing, Apr 2026
Do this
Write one sentence that explains why your current price is fair, and use it the next time a customer says it is too expensive instead of offering a discount.