Most People Aren’t Used to Solving Problems with Money

For example, if you can’t get a ride-hailing car, very few people will immediately jack up the fare—triple, five times, ten times. Keep raising it, and you will definitely get one.

This isn’t a matter of having money versus not having it; it’s a mindset.

As long as there’s still profit to be made, people tend to push forward rather than give up. Raising the price is one such tactic.

An item normally bought for $5 can be resold for $10, and people have always made money this way by earning the spread. Suddenly, the cost jumps to $6, and most people will subconsciously wait. They’re used to the $5 price point. Someone accustomed to buying—not selling—doesn’t have a $9.90 target in mind, because they don’t know where the profitable exit actually is.

It’s just like running ads: as long as there’s money to be made, you’ll keep spending regardless of how high the cost is.