Why first pricing destroy product success

Reliance Jio (India's biggest cellular network) accidentally made it impossible for anyone to charge fairly, ever again, here’s interesting story

Think about what happened Sept 2016 and suddenly

Reliance announces free data, unlimited calls, for months, then 300 million people downloaded the app, used it daily, built habits around it

then Jio started charging and it was User irreversibility case

But by then, the damage was done :not to Jio, to everyone else. Users weren't evaluating "what is data worth?" They were measuring every new price against a number already burned into memory: near zero Airtel's ₹199 plan didn't feel like a fair price. It felt like a penalty to end user, another example

Take PhysicsWallah, started as “Affordable Quality education” and since inception barring +/-10% price fluctuations, it largely remained the same, but why so?

Thing is its Arbitrary Coherence i.e the first price you see becomes your permanent reference point, regardless of how random/innovate etc it was. Every future decision coherently follows that first imprint

the company was not pricing the product. they were pricing the memory in user

Here’s a trap on how it destroys products:

your free trial,

Your launch discount,

your "introductory offer" - those aren't temporary

They're the number your user will carry forever. Raise it later, and you're not increasing priceYou're triggering loss aversion against their own past

The first price isnt your opening offer. Its your ceiling, your floor, and everything in between

Comment below if you have alternative/better insights, love to know your takeFound insightful?

Bookmark this before your next pricing conversation