Getting Past The Premium Pricing Bias
Financial Management

Getting Past The Premium Pricing Bias

One thing I don’t usually like to do is, if I need some type of product or service because of scheduling reasons, I often just go around the area to see what’s available. That could be bad because I’m not really sure what the prices are compared to the places I usually go to. In this case, I had to get a haircut, and just from looking at some places around the area using basic information like Google Maps, it seemed like the prices were all over the place. There were barbershops, for example, that charged about thirteen dollars for a haircut, to some that charged, for example, literally sixty to one hundred dollars.

So it was a little bit overwhelming to determine who to go with, because generally speaking, you’d think the cheaper places would do a less professional job — maybe they’d just shave a large part of your hair without much care — whereas if someone’s charging more money, you’d think they’re more premium, more experienced. But in this case, I kind of went with what I was reading in terms of reviews, because it’s important to see whether or not people are actually getting satisfied customers.

Now, granted, people could have fake reviews, but when it comes to a business that’s been there for a while and the reviews seem like they’re from various sources and long-time reviewers, odds are it’s an okay business. So that’s what I did. I bypassed a lot of the forty to one hundred dollar haircut places and went to a place that only charged about eighteen dollars. And when I went there, it seemed very down-to-earth. It wasn’t too fancy overall — basic barbers, basic signs — so it seemed okay.

And for the most part, it seemed like they were doing a decent job. I mean, you’d think most people would charge forty dollars for this, but they only charged about eighteen, and at the end of the day, I thought they did an okay job.

it’s one of those things where we can often have a bias when it comes to pricing, where we just assume something more expensive must be better — whereas that’s just not the case in so many scenarios. For example, even things like sunglasses, where you could have a product that’s made exactly like the top-end brands, but the only difference is you’re paying for the marketing. And that could be the case too when it comes to services like this. You could have barbers that know exactly what to do. If you show them a certain style, there’s no difference — they use the same scissors or shavers, and you could get the same job done.

It’s something to think about when you’re shopping around, I suppose. Look for reviews, try to see their reputation, and really judge the work in general. That would be the important thing, in my opinion, to save a lot of money. I saved a lot of money by not just going with the most expensive place.

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