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(I knew this philosophy degree would come in handy) The author may not know it, but part of this article is describing something occasionally known as the judg
by simonsarris 14y ago
(I knew this philosophy degree would come in handy)
The author may not know it, but part of this article is describing something occasionally known as the judgement-action gap. It's a point in psychology/philosophy typically brought up in moral reasoning, specifically because there's very often a massive discrepancy between what people say they will do and what they end up doing in any moral situation.[1] This is no doubt true for saying they would pay X for Y.
I think the judgement-action gap is an extremely important thing to remember at all times, especially in the realms of business deals. If a commitment isn't on paper, it's not really a commitment. (Money counts as paper, too.)
Alas while I think the gap is a neat principle, I'd rather read an article just on that principle than one titled "How to price something" that culminates in the advice "make up a price, actually sell it and see." If that's all the advice you have, then even asking for people's opinions of what they'd pay for it is more useful than a 100% arbitrary number. It seems odd the article would offer no real solutions.
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Hey! Wait a minute!
I hate to be the typical HN cynic but the last line reveals that this is not an article at all but a thinly veiled advertisement.
While the article doesn't actually say how to effectively price something, I had no idea what Basecamp Breeze is and now I do. 37 signals blog, you've got us again![2]
[1] My favorite example of this, though a bit dour, is "the only moral abortion is my abortion", a long list of stories of people who are morally opposed to abortions, yet still getting them: http://www.prochoiceactionnetwork-canada.org/articles/anti-tales.shtml http://www.prochoiceactionnetwork-canada.org/articles/anti-t...
[2] I'm always surprised that 37signals posts get upvoted extremely quickly, seemingly regardless of content. It's not a bad thing per se, just a surprising thing.
- CrankyPants 14y agoYeah. 37signals seems to have nailed the Startup Porn genre, and the hive mind eats it up. And: if that's what qualifies as thinly-viled advertising...
- einhverfr 14y agoAlso one thing that occurs to me. One real problem with a question of "would you pay $x for ___" is that it is usually way to abstract. It's not just a judgement/action gap issue, it's an issue where the individual does not have enough information to even make an informed judgement. BTW, I do often start by asking "would you pay $x for ___ instead of paying $y for ____ or would you pay $y for ___ instead of paying $x for ____?" There is still a judgement/action gap issue there, but in my experience it tends to lead to more interesting discussions about value propositions and the simple yes or no is less interesting than the rest.
- vog 14y agoIndeed, this article's quality is nowhere near e.g. what Joel Spolsky wrote on that topic: http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html http://www.joelonsoftware.com/articles/CamelsandRubberDuckie...
- dshah 14y agoAnother really good piece on pricing is: http://neildavidson.com/download/dont-just-roll-the-dice/ http://neildavidson.com/download/dont-just-roll-the-dice/ By @neildavidson