Abstract mathematics and mysticism
April 03, 2025
Pricing is an abstract mathematics that often hides behind an aura of mysticism and faith. Although formulas and calculations try to give an air of precision, the final value of a product or service often depends on subjective intuitions, market perceptions and even unfounded beliefs. Big brands, for example, assign exorbitant prices not only based on costs, but on the promise of status or exclusivity,a true act of faith in the consumer’s mind.
Behind the spreadsheets and algorithms, pricing also carries a touch of black magic, where numbers are adjusted by “feelings” and hidden strategies. Psychological discounting, which transforms $100 into $99.90, is a modern witchcraft, as is the belief that a high price automatically means superior quality. In the end, pricing is less an exact science and more a game of illusion,a dance between numbers and human irrationality.