Why Pricing is Harder than Quantum Mechanics

I’m heading to San Diego today to do a workshop on Measuring the Efficiency and Effectiveness of Pricing. Believe it or not, this will be a fun 2 days for me and the other participants. One of things that is most challenging about pricing is that it’s so hard to measure. Which is why I like this concept: pricing is hard than quantum mechanics. Sound absurd? Compare:

Quantum Mechanics Pricing
Not good for conversation at cocktail parties. Not good for conversation at cocktail parties.
The act of measurement itself affects the result. The act of measurement itself affects the result.
Spend years and millions of dollars designing elaborate experiments with sensitive equipment and analyzing data with a staff of PhD’s. Have until 4PM this afternoon to figure out the right price for a $10M contract with a half-populated spreadsheet.
If it goes smoothly, you have “confirmed existing predictions.” If it goes smoothly, sales will get a commission and no one yells at you.
If it doesn’t, you could win the Nobel Prize. If it doesn’t, you get blamed for losing the sale.

One thing that makes pricing easier is that the theoretical underpinnings are pretty simple and don’t require years of studying math involving imaginary numbers and other counter-intuitive concepts. I, for one, don’t have the math skills for quantum physics, so I’m stuck with the hard subject.

I look forward to seeing some of you in San Diego. (For other folks who would like to learn more about pricing workshops, visit our website.)

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