The same person, the same service, the same product can sell for dramatically different prices in different channels. This is not an illusion. It is determined by several clear economic principles.
The first principle is that channels determine pricing power. The same product sold on Xianyu can only fetch Xianyu prices. Sold on Taobao, it fetches Taobao prices. Sold through a high-end consultancy, it commands a professional service fee. The essence of a channel is trust endorsement. The premium customers pay for a channel is essentially payment for trust in that channel.
The second principle is that trust cost is the highest hidden cost. In an unfamiliar transaction, customers must spend time and effort verifying your authenticity. The higher this verification cost, the lower the price they are willing to pay. Conversely, once trust is established, the premium they are willing to pay rises significantly.
The third principle is that signalling cost determines the price floor. A high price is itself a signal: expensive means professional, reliable, and trustworthy. A low price sends exactly the opposite signal: cheap means low quality, high risk, and no guarantee. Customers do not evaluate price based on cost. They evaluate it based on signals.
The fourth principle is that screening costs are ultimately borne by the price. Low prices attract large numbers of low-quality customers who consume more time, make more demands, and generate more disputes. These hidden costs eventually translate into part of your operating costs.
These four principles reveal a counterintuitive conclusion: in the service industry, a high price is not an obstacle to revenue. It is a tool for screening quality customers, reducing operating costs, and establishing a trust signal.