# Tiered pricing equilibrium Once a product's price gets high enough, potential customers’ [[Loss aversion]] makes them feel a risk. They ponder, take more time to decide, and either buy, wait some more, or forget about it. The effect is especially strong when a new tier has just been launched and there are many units left. As a result, even with a risk reversal mechanism in place (i.e., a money-back guarantee), sales slow down. When they do, our temptation as sellers is to react and go back to the previous price in order to avoid missing sales. But I’m not sure yet what the best reaction is at that point. It's often better to wait long-enough, and resist the urge to adjust the price, even if it's a bit stressful. You can adapt it once you have enough actual data to make a grounded judgement call. The good news is that FOMO kicks in and counter-balances the negative effect once the number of remaining units gets low enough (i.e., 5-10). I’m no economist, so take this all with a grain of salt 😂 ## Related - [[Tiered pricing]] - [[DeveloPassion's Newsletter 059 - Broken records]]