Three Axiom
Pricing Strategy Based on First Principals
Axiom I: Price is a function of value, not cost
- Customers don’t pay for your effort.They pay for the outcome they believe they’ll get.
- Cost-plus pricing is lazy
- Features ≠ value
- FWillingness to pay is psychological and economic
Axiom II: Pricing shapes behavior more than product
- Pricing is a growth lever, not a finance afterthought
- Bad pricing creates bad customers
- Monetization decisions shape retention, sales cycles, and roadmap
Simplicity scales, complexity leaks revenue
- Every unnecessary option, discount, or exception erodes clarity and margin.
- Over-segmentation kills sales velocity
- “Custom pricing” is often fear, not strategy
- “Simple pricing converts better and is easier to defend internally