Matt Ryder explains why prospects freak out at prices that break their expectations. A $4M Bugatti feels normal, but a $4M Toyota shocks people. Context and what they've seen before shape what price feels right.
If I put Jeff Bezos at a Bugatti dealership and said, Jeff, this is a $4 million Bugatti, like he wouldn't blink. He's Jeff Bezos. He can afford it if he wants it. But if I put him into a Toyota dealership and was like, hey, Jeff, this is a $4 million Toyota, like he would shit his pants and he'd be super shocked and he would reel back from the price and go, oh, right, because this, the context doesn't make sense. A $4 million Bugatti standard, right? What color is yours? A $4 million Toyota doesn't make any sense. Right. So what that is is like there's an expectation of pricing that, that individ have to figure out a way of seeing if they have an expectation of pricing because if he'd paid previously $4 million or he'd seen a 4 million dollar Toyota, then that wouldn't surprise him the second time around. And so we want to figure out like, how we can gauge this.
