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Double Your Prices

Name: Double Your Prices
Uploaded: 2025-09-06T00:00:26+00:00
Duration: 44 s
Channel: Shanli Liu, CPA, CTP
Description: In this short business parable, a baker who works 18 hours a day selling the best bread for a low price is advised by an old merchant to double his…

6 Sept 2025 · 1 min

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In this short business parable, a baker who works 18 hours a day selling the best bread for a low price is advised by an old merchant to double his prices. The baker fears losing customers, but after raising his price he loses about half of them while earning the same revenue in half the time. The freed hours allow him to experiment with new recipes, improving the quality of his bread. As the product gets better, he raises his price again, attracting customers who value quality over low cost. Over a year, he sells the same number of loaves at four times the original price to a loyal, quality‑focused clientele. The merchant concludes that the price a business sets signals its value to the world, and the market responds accordingly. The story illustrates how strategic price increases can reduce workload, enable product innovation, and attract higher‑value customers.

Chapters

A baker sells the best bread in town for 1 copper coin, and so he's working 18 hours a day, but he's barely surviving. One day, an old merchant sees him turn away customers halfway through the day when he runs out of bread. He says, just double your prices. And of course, the baker is like, that's impossible, I'll lose all my customers. But eventually he's like, fine, I'll double my prices. And when he does, he loses half his customers, but he makes the same money working half the time. And with his free hours, he then experiments with new recipes, and his bread gets even better, and he sells even more. And over time, he keeps selling more until eventually he doubles his prices again. And so a year later, he sold the same number of loaves he used to, but at 4 times the price to his favorite customers because they valued the quality over the price. And so the merchant then said to him, the price you charge is how valuable you tell the world your work is. And the world believed you as soon as you did.