98: The Pricing of Things

Thoroughly Considered · 12 May 2023 · 1h 00m · Episode 98

What this episode covers

Tom Gerhardt and Dan Provost of Studio Neat discuss the complexities of pricing physical products, contrasting their preference for round numbers with the industry standard of ending prices in .99. They analyze specific examples, including Substack's pricing experiment, Apple's App Store fees, and their own upcoming product launch, where material choices force a decision between higher costs and premium positioning. The conversation explores how pricing signals brand values, the impact of paid media on conversion optimization, and the shift from relying on product launches to a sustainable revenue model.

Mentioned

Companies
Studio Neat, Substack, Apple, Walgreens, Comic Relief, Shopify, Relay FM
Products
Stratechory, Panel Pad, Mark One, iPhone
Also
Johnny Ive, Ben Thompson, Aaron Draplin

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