The Counterintuitive Truth About Product Pricing
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By Itay Sagie
Published on April 21, 2026.
Itay Sagie, a strategic adviser to tech companies and investors, argues that product pricing can be used as a shortcut for quality in real-world markets, as it often doesn't always drive demand. His friend, a serial entrepreneur, launched a fintech platform that was free for businesses but failed to attract businesses. He then added on top of the original monetization plan, offering a monthly subscription. This change led to significant growth in the company's product sales and revenue. The price-quality heuristic, which identifies identical items with higher prices, suggests that identical items are rated higher when they cost more, this is amplified in B2B.
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