The Architect's Pricing: How to Sell Digital Air for Gold
The Architect’s Pricing: How to Sell Digital Air for Gold
In the old world, price depended on production cost.
- It costs you €10 to make → You sell for €30
- €20 margin
- Simple logic
In the world of AES (Autonomous Economic System), this logic collapses.
Production cost is close to zero.
AI generates an article for a few cents. A course duplicates infinitely at no marginal cost. Software serves 1 or 10,000 clients for the same hosting price.
So, how do you set your price?
The Architect practices Value-Based Pricing — and this is the secret to 99% margins.
The Three Pricing Philosophies
Philosophy 1: Cost-Plus (Price by Costs)
Formula: Price = Cost + Desired Margin
Example:
- Production cost: €10
- Desired margin: 100%
- Selling price: €20
Problem in digital:
- Production cost: €0.10
- Desired margin: 100%
- Selling price: €0.20
That makes no sense. You can’t base your price on a near-zero cost.
Philosophy 2: Competition-Based (Price by Competition)
Formula: Price = Competitors’ Price (± adjustment)
Example:
- Competitors sell for €50
- You sell for €45 (to be competitive)
- Or €55 (to appear premium)
Problem:
- Race to the bottom (everyone lowers)
- No differentiation
- Compressed margins
- You let others define your value
Philosophy 3: Value-Based (Price by Value)
Formula: Price = Perceived Value to Customer × Coefficient
Example:
- Your system makes the customer earn €10,000/year
- Perceived value: €10,000
- Coefficient: 10% (customer keeps 90% of the value)
- Price: €1,000
Advantage:
- High margins
- Differentiation by value
- Alignment with customer success
- Independence from competitors
Value-Based Pricing in Practice
Step 1: Identify the Transformation
What does your product/service transform for the customer?
Questions to ask:
- Before using my product, what situation is the customer in?
- After, what situation are they in?
- What’s the measurable difference?
Examples:
- SEO training: Before = 0 traffic. After = 10,000 visitors/month.
- Automation tool: Before = 20h of work/week. After = 2h.
- Sales template: Before = 1% conversion. After = 5%.
Step 2: Quantify the Value
Put a number on this transformation.
Traffic: 10,000 visitors × 2% conversion × €50 average cart = €10,000/month in potential revenue
Time: 18h saved × €50/h (value of time) = €900/month in value
Conversion: +4% conversion × 100 sales/month × €50 margin = €200/month in additional profit
Step 3: Apply a Coefficient
The customer must keep most of the value — otherwise they won’t buy.
Typical coefficients:
- General public digital products: 5-10% of value
- B2C training: 10-20% of value
- B2B services: 20-30% of value
- High-ticket consulting: 30-50% of value
Example:
- Value created: €10,000/month
- Coefficient: 10%
- Price: €1,000
The customer pays €1,000 to earn €10,000. It’s an obvious deal.
The Psychology of Pricing
Beyond rational calculation, price has a psychological dimension.
Price as Quality Signal
A low price says: “It’s not very good, but it’s cheap.”
A high price says: “It’s excellent, that’s why it costs this much.”
Paradox: Some products sell BETTER when you increase the price.
The customer associates high price = superior quality.
Price as Filter
A low price attracts:
- Customers with few means
- Customers who don’t value their time
- Customers who complain a lot
- Customers who don’t implement
A high price attracts:
- Customers with means
- Customers who value quality
- Serious and engaged customers
- Customers who get results (because they invest themselves)
Price is a filter. Choose who you want to filter.
Psychological Anchors
The human brain evaluates prices by comparison.
Technique 1: The High Anchor Present the most expensive option first.
- Platinum Option: €5,000
- Gold Option: €2,000
- Silver Option: €500
The customer compares. €2,000 seems “reasonable” compared to €5,000.
Technique 2: External Comparison Compare to more expensive alternatives.
“A consultant would charge €10,000 to do this. This system does it for €1,000.”
Technique 3: The Cost of Inaction Show what it costs NOT to buy.
“Every month without this system, you lose €2,000 in potential revenue.”
The Architect’s Pricing Models
Model 1: One-Shot (Single Payment)
Structure: Pay once, lifetime access.
Advantages:
- Simple to understand
- Immediate cash flow
- No subscription management
Disadvantages:
- Non-recurring revenue
- Constant sales pressure
- Lower valuation (for resale)
Ideal for: Templates, short courses, simple tools.
Model 2: Subscription (Recurring)
Structure: Pay €X/month for continuous access.
Advantages:
- Predictable revenue
- Long-term relationship
- High valuation (for resale)
Disadvantages:
- Churn to manage
- Continuous value to deliver
- Higher entry barrier
Ideal for: SaaS, communities, ongoing services.
Model 3: Hybrid
Structure: Initial payment + subscription.
Example: €500 setup + €50/month.
Advantages:
- Initial cash flow
- Recurring revenue afterward
- Customer commitment
Ideal for: Complex systems, coaching, B2B services.
Model 4: Revenue Share
Structure: You take a % of generated revenue.
Advantages:
- Total alignment with customer
- No risk for customer
- High earning potential
Disadvantages:
- Tracking complexity
- Dependence on customer success
- Trust necessary
Ideal for: Strategic partnerships, high-potential clients.
Pricing Mistakes to Avoid
Mistake 1: Undervaluing Out of Fear
“I don’t dare ask for this price, people will find it too expensive.”
That’s your fear talking, not market reality.
Test. You’ll often be surprised.
Mistake 2: Comparing to Low-Cost Competitors
There will always be someone cheaper.
Don’t play that game. Differentiate by value.
Mistake 3: Forgetting the Customer’s Hidden Costs
Your price isn’t the only cost for the customer:
- Learning time
- Opportunity cost
- Risk of failure
Take these factors into account in your positioning.
Mistake 4: Single Price for Everyone
Different customers have different payment abilities and different needs.
Offer options (tiers) to capture different segments.
Mistake 5: Never Increasing
Your prices should increase with:
- Your experience
- Your proven results
- Added value
- Inflation
Increase regularly. Old customers keep their price. New ones pay more.
The Premium Pricing Mindset
You’re Not Selling Your Costs
Repeat after me:
“The customer doesn’t care what it costs me to produce.”
They pay for value received, not for your expenses.
You’re Selling a Transformation
You’re not selling:
- A PDF
- An access
- Hours
You’re selling:
- More revenue
- More free time
- Less stress
- A problem solved
High Margin Is Ethical
A 90% margin isn’t “stealing” from the customer.
It’s giving them 10x the value of what they pay.
If your €100 product makes them earn €1,000, your margin is deserved.
Conclusion
In the digital world, production cost is near zero.
Basing your prices on costs is a fatal mistake.
The Architect practices Value-Based Pricing:
- Identify the transformation
- Quantify the value in euros
- Apply a coefficient (10-30%)
- Communicate the value, not the price
The result: 90%+ margins, satisfied customers, and a sustainable business.
Don’t sell your costs.
Sell the transformation.
That’s the secret to gold prices for digital air.