I was asked at Riot Fest Chicago what I did and chose “Economics” as my answer for the moment. He continued: “Micro or Macro”. I said “I price stuff”. “What kind of stuff?” he inquired. “Stuff, like that shirt you’re wearing, the music fest tickets, or the carny rides.” He replied, “Oh, you do grunge economics. Punk, grunge economics.”

  1. Pricing is about a lot more than just covering your margins.
  2. It’s also more complex than simply crunching some numbers and attempting to maximize profit.
  3. There are many factors at work, and it requires knowing your market, your competitors, and your customers.
  4. As the saying goes, there are exceptions to every rule—even when a rule has “Law” in its name.
  5. At the end of the day, you must convince your customers to choose you.
  6. It’s best to approach this issue with a full box of tools…and a dash of humility.