Quick: What’s the most you would ever-ever pay for a birthday cake for a 5-year old’s birthday party?

Hold that number.

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My friend owns a boutique-y bakery in a high-end ski town.

A customer came in requesting an elaborate multi-tiered Frozen (as in, Elsa and Anna) birthday cake for her five-year old daughter’s birthday party.

Not really wanting the “project,” my friend quoted a number off the top of her head she thought was sure to drive the buyer away.

“I thought I was being absurd with this price.”

The customer didn’t bat an eye.

She ordered the cake.

The value of the elaborate birthday cake was greater than the price tag.

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How you think your buyer values your product may be skewed by how you value the very same product.

And, how you value a product is likely influencing how you price your product.

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How would you price a 3-tier Frozen birthday cake for a 5-year old’s birthday party?

Yeah, no.

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Try $1100.