Do not bring your internal complexity to your customer
Maarten Laruelle A few weeks ago, I had a fascinating conversation with an entrepreneur who runs premium beer tours in Belgium. He takes small groups through some of the country’s finest breweries, sharing stories about brewing traditions and pairing techniques along the way. It is a genuinely unique experience.
When I asked about his pricing, he told me something that stuck with me. Early on, when a customer asked about bringing an extra person, he would break down all the incremental costs: the additional tasting fees at each brewery, the transport cost per seat, the extra guide materials. He would then calculate a precise add-on price based on those real costs.
The result? Customers would hesitate. The price felt arbitrary and confusing. Some would negotiate individual line items. Others would simply decide not to bring the extra person at all.
The shift
Then he tried something different. Instead of exposing his cost structure, he set a clean, premium price for additional participants. No breakdown, no explanation of brewery fees versus transport costs. Just one number that reflected the value of the experience.
The conversion rate went up. People stopped negotiating. And here is the interesting part: the premium price was actually higher than what he used to charge based on pure cost calculation. Customers were happier paying more for something that felt clear and confident.
Why this matters for pricing
This is a pattern I see repeatedly across industries. When you expose your internal complexity to customers, several things go wrong:
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You invite negotiation. When customers see individual cost components, they start questioning each one. “Why is the transport cost that high?” becomes a conversation you never wanted to have.
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You anchor on cost, not value. The moment you show a cost breakdown, the customer mentally shifts from “what is this experience worth to me?” to “are these costs justified?” That is a losing frame.
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You create decision fatigue. Every additional data point is another thing the customer needs to process before saying yes. Simplicity drives conversion.
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You undermine your own positioning. Premium experiences are not built on itemized receipts. They are built on confidence and clarity.
The principle
Your internal pricing model, the way you calculate costs, margins, and allocations, is your business. It should be rigorous, detailed, and well-documented internally. But what you present to the customer should be simple, clear, and anchored in the value they receive.
Think of it like a restaurant. The chef needs to know the exact cost of every ingredient, the labor time for each dish, the overhead allocation per plate. But the menu just says: “Pan-seared duck breast, 34 euros.” Nobody wants to see the spreadsheet.
How to apply this
Next time you are building or revising a pricing model, ask yourself: am I exposing internal complexity that the customer does not need to see? If the answer is yes, simplify the external presentation. Keep the complexity where it belongs: behind the scenes.
Your customers will thank you. And your margins might thank you too.
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