Before You Set Your Prices, Watch This!

0:00 So, a few weeks ago, I paid £14 for a sandwich in one of those painfully fashionable cafes in Clark andwell. You know the type. Handwritten chalkboard basting artisan ham and a barista called Minty with a trust fund. The sandwich itself was perfectly average. But here's the interesting part. 5 minutes later, I found myself nodding along as Minty reappeared to explain the raw flour in the bread. I wasn't nodding because it tasted extraordinary. I was nodding because I paid £14. What this teaches us, apart from the fact that I'll overpay for home, is this people don't judge value and then justify the price. They see the price and then build the value to protect themselves. So if you work in luxury and you don't understand this, you'll either underpric yourself

0:45 or overexlain. And both will cost you authority. In this video, I'm going to show you how to use price to create belief so that you never have to justify your value ever again. Here's where most luxury professionals make a critical mistake. They don't understand how people convince themselves a price is worth it. So, they try to justify it with features, benefits, or heritage. A list of materials, craftsmanship, microns of stitching, as if technical detail can force conviction. Or they rehearse sales language about comfort, exclusivity, performance, phrases that clients have heard a thousand times before. And then there's heritage, the favorite. We've all heard the grand tales of founded in 18 something by

1:32 Gustaf, who crossed deserts with grit and three goats. Not once has a client thought, I'm going to buy this because Gustoff had grit in 1864. All of it is overexlaining, an attempt to justify the cost. But the moment you justify price, you admit it needs defending. So in behavioral psychology, this is known as price quality bias. The brain makes a quiet assumption. If it costs more, it must be better. There's research from Stanford where people tasted the same wine but were told different prices. The higher price wine didn't just seem better. Their brain actually lit up in the pleasure and reward centers as if the entire experience itself had changed. That's the point. Value isn't

2:18 discovered. It's constructed to protect the buyer from regret. We don't want to feel foolish. So the brain upgrades the experience to match the price. High net worth individuals understand this instinctively. They don't ask why is this expensive? What they're really deciding is, do I believe this is supposed to be expensive? Price isn't being judged. You are. This is something I train clients to use strategically. If you want someone to believe in your value, never defend your price. I had a therapist client who was charging £60 an hour and couldn't work out why she was fully booked but still wasn't making any money. This is someone with a million followers, a best-selling book, a podcast with millions of downloads. She

3:04 had real authority, but her price said something completely different. So, I told her to raise it to £300 an hour. She wasn't particularly happy with this, but she did it anyway. She lost plenty of the 60 clients, but she gained far more at 300. The kind of clients she wanted in the first place. The higher price didn't make her less approachable. It made her credible. The number doesn't just tell people what to pay. It also tells them how to think about you. And if someone accuses you of being too expensive, you simply say, "I'm not too expensive. You just can't afford me." Your job is not to explain the price. Your job is to state it and let them decide what it means. And sometimes the only thing standing [music] between why

3:50 is this so expensive and this must be excellent is the price itself.