# 98: The Pricing of Things

- Show: [Thoroughly Considered](https://hardwarepodcasts.com/podcast/thoroughly-considered)
- Published: 2023-05-12
- Length: 1h 00m
- Episode: 98
- Page: https://hardwarepodcasts.com/podcast/thoroughly-considered/2023-05-12-98-the-pricing-of-things
- Listen: http://relay.fm/tc/98

## Summary

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.

## Chapters

- [0:08](https://hardwarepodcasts.com/podcast/thoroughly-considered/2023-05-12-98-the-pricing-of-things#t=8) Introduction: Red Noses and iPhone Predictions
- [13:54](https://hardwarepodcasts.com/podcast/thoroughly-considered/2023-05-12-98-the-pricing-of-things#t=834) The Psychology of .99 Pricing and Substack's Experiment
- [20:57](https://hardwarepodcasts.com/podcast/thoroughly-considered/2023-05-12-98-the-pricing-of-things#t=1257) Pricing as Product Design: Studio Neat's Dilemma
- [26:50](https://hardwarepodcasts.com/podcast/thoroughly-considered/2023-05-12-98-the-pricing-of-things#t=1610) Keystone Pricing, Margins, and the $100 Threshold
- [41:39](https://hardwarepodcasts.com/podcast/thoroughly-considered/2023-05-12-98-the-pricing-of-things#t=2499) Brand Signals, Round Numbers, and Consumer Perception
- [47:48](https://hardwarepodcasts.com/podcast/thoroughly-considered/2023-05-12-98-the-pricing-of-things#t=2868) Paid Media, Conversion Rates, and Sustainable Growth

## Topics

- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Marketing & brand](https://hardwarepodcasts.com/topic/marketing-and-brand)
- [Direct-to-consumer & e-commerce](https://hardwarepodcasts.com/topic/direct-to-consumer)
- [Industrial & consumer product design](https://hardwarepodcasts.com/topic/industrial-design)

## Most relevant to

companies scaling up

## Mentioned

- Studio Neat (company)
- Substack (company)
- Apple (company)
- Walgreens (company)
- Comic Relief (company)
- Stratechory (product)
- Panel Pad (product)
- Mark One (product)
- iPhone (product)
- Johnny Ive (other)
- Ben Thompson (other)
- Aaron Draplin (other)
- Shopify (company)
- Relay FM (company)

## Related episodes from other shows

- [Ep. 22 - Pricing Your Product](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2024-06-13-ep-22-pricing-your-product) (Open Hardware Manufacturing Podcast)
- [407: Mutant Cough](https://hardwarepodcasts.com/podcast/making-it/2023-08-11-407-mutant-cough) (Making It)
- [Advice Line: What’s Your Value?](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-03-19-advice-line-whats-your-value) (How I Built This)
- [12 - Season 1 wrap up](https://hardwarepodcasts.com/podcast/people-of-packaging/2019-12-17-12-season-1-wrap-up) (People of Packaging)
- [405: What If We Put Sunglasses On It?](https://hardwarepodcasts.com/podcast/making-it/2023-07-21-405-what-if-we-put-sunglasses-on-it) (Making It)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/thoroughly-considered/2023-05-12-98-the-pricing-of-things. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Thoroughly Considered.