Part 3/8:
The speaker reveals a recurring challenge in business: the art of setting prices. Despite numerous theories on pricing in economics, many practitioners, including CEOs and this prostitute, often grapple with the question of how to determine the right price for their services. The woman's explanation was simple; she looked at her competitors online and chose to charge the same rate of $300 per hour. This, the speaker notes, is a common misstep that even seasoned executives make – leading them away from dynamic pricing strategies based on marginal costs and demand elasticity.