Building something makes you proud. Selling it effectively means seeing it clearly.

A founder once said:

Another shared:

This is the endowment effect at work—a behavioural bias where we overvalue what we own or create, simply because it's ours.

It’s not arrogance. It’s psychology.

But if unchecked, it can cloud pricing, product decisions, and go-to-market execution.

Let’s break down what the endowment effect is, how it plays out in business—and how to protect your decision-making from it.

What Is the Endowment Effect?

The endowment effect is a cognitive bias where people place a higher value on something just because they own it.

In business, it shows up as:

• Thinking your product is “clearly better” than the market suggests

• Overpricing based on emotional input instead of customer value

• Dismissing feedback or hesitating to pivot

When you’ve spent:

• Months building

• Nights perfecting

• Years investing

…it’s natural to believe it’s worth more. But that belief often isn't shared by the market.

How It Shows Up in Business

1. Pricing Too High Without Market Justification

2. Over-engineering the Product

3. Ignoring or Resisting Feedback

4. Holding On to Failing SKUs or Services

Why It’s Risky

• You lose objectivity: Your belief in the product becomes stronger than market signals.

• You miss what customers actually value: Because you focus on what you think is valuable.

• You price yourself out of the market: Not because the product is bad—but because it’s mismatched with customer perception.

• You delay pivots: Thinking loyalty to your product is loyalty to your vision.

In short, the endowment effect makes you cling to your creation when the market wants something simpler, cheaper, or different.

How to Guard Against It

1. Separate “Builder Mode” from “Buyer Mode”

Create your product with love.

Sell it with detachment. Ask:

• What would I pay if I hadn’t built this?

• What would make me switch if I were the customer?

2. Benchmark Pricing Regularly

Know where your offering stands in the pricing spectrum—and why.

Value must be backed by customer benefit, not internal effort.

3. Talk to Lost Leads

They’re more honest than fans. Ask:

• Why didn’t you choose us?

• Was it price, complexity, lack of trust, or unclear positioning?

4. Create a “Kill List” Quarterly

Products, features, or services you’ll let go of if data doesn’t support them.

Be ruthless with underperformers, even if they’re your favourites.

5. Bring in External Reviewers

Let someone who isn’t emotionally invested test your offer and messaging.

Fresh eyes break emotional attachment.

TL;DR – Too Long; Didn’t Read

• The endowment effect leads founders to overvalue what they create—distorting pricing, feedback, and product decisions.

• Customers don’t care how hard it was to build—they care how well it solves their problem.

• Protect yourself by separating creator pride from customer perspective.

• Use data, conversations, and market comparisons to reset expectations.

• Let your creation evolve—don’t let your attachment to it block growth.

Your product may be your baby.

But your customer isn’t its grandparent. They don’t share your sentiment.

And that’s okay—as long as you build, price, and pitch with their lens in mind, not just yours.

Because loyalty to your business doesn't mean loyalty to everything it makes.

It means doing what serves it best—even when that means letting go.