What fine wine can teach us about pricing power | The Growth Mindset


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I’ve learned the hard way that the fastest way to lose focus is to chase shiny things – whether it’s a hyped app, a new SaaS tool or the ‘bold pivot’ that leaves your customers confused. The trick in business, and in life, isn’t spotting what’s valuable – it’s ignoring what just looks that way. Let’s get into it.

Enjoy!

The behavioural science of pricing your product

Marketers have long known that price doesn’t just reflect value – it creates it. Rory Sutherland, vice-chairman of Ogilvy and one of the sharpest minds in behavioural science, explores this idea through wine in a new essay for Ourglass & Partners. His argument is that price acts as a signal of quality, not a proof of it. Below £10 a bottle, you’re mostly buying tax and packaging; above £50, you’re paying for status more than taste. The real pleasure lies in the middle, the “sweet spot” where craft and cost align.

The same logic applies to business. Founders often mistake price for maths when it’s really psychology. Set it too low and you signal inexperience; set it too high and you trigger scepticism. It’s a lesson in how understanding the behavioural cues behind value can turn pricing from guesswork into strategy. Check out the piece here.

The curse of shiny object syndrome

Remember the ‘anti-Instagram’ app BeReal and the once-viral, audio-only platform Clubhouse? Both were showered with attention and investment – then faded just as fast. Entrepreneur call this “shiny object syndrome”: the startup habit of chasing trends that sparkle but rarely last. This article outlines how it can happen – from over-investing in AI to piling on features or partnerships that dilute focus. The point is that growth isn’t about chasing every opportunity, it’s about knowing which ones to ignore. Read the article here.

Where have the female founders gone?

A new government survey shows that only 14 per cent of UK small and medium-sized businesses are led by women – down from 19 per cent in 2021. The decline comes despite initiatives such as the Invest in Women Taskforce, which estimates that closing the gender entrepreneurship gap could add £250 billion to the economy. Debbie Wosskow, co-chair of the taskforce, says the investment system still fails to back female-founded firms, particularly in sectors such as health and education. Female-led businesses deliver greater returns, says Wosskow, and losing them means losing growth. The Times has the story. (Note it’s paywalled, but you can access it with Archive.)

Is AI slowing productivity?

Claims that AI is supercharging productivity may be overstated. In The AI Shift, FT columnists John Burn-Murdoch and Sarah O’Connor question whether large language models are truly making us faster – or just making us feel that way. A recent study found experienced developers were 19 per cent slower when using AI tools, despite believing the opposite. The problem, they say, is structural: speeding up one part of the process can overwhelm others. AI amplifies what already exists – efficient systems become sharper, but flawed ones clog faster. In other words, leaders need to fix the plumbing before adding the fire hose. Read the article here.

Why the pitch is breaking — and what comes next

The creative pitch has long been the advertising industry’s necessary evil: costly, drawn-out and rarely satisfying for either side. But according to The Future of the Pitch 2025 report from Creativebrief, change is finally coming. In surveys of more than 100 CMOs and agency CEOs, 68 per cent of brands and 84 per cent of agencies said the traditional pitch is no longer fit for purpose. Both sides are calling for shorter, fairer, and more collaborative models that value strategic thinking over theatre. AI, too, is starting to play a role – from faster matching to smarter evaluation. Creativity is moving beyond the contest model – find out more here.

Your Christmas activity should have started

Half of shoppers now want festive promotions to start before the end of October, according to A1 Retail Magazine. It’s another sign that the holiday season is stretching longer each year – and that brands waiting until December risk missing peak demand. For businesses planning campaigns, this isn’t just about timing but tone: the earlier the push, the fresher the creative must feel. And for added creative inspiration, the Sunday Strategy team has helpfully compiled a global archive of Christmas ads from 1971 to now – from Aldi’s ‘Kevin the Carrot’ sequel to Burberry’s celebrity-studded ‘Twas the Knight Before’.

Free AI tools for UK SMEs: time to upskill

Skills England has released a set of free resources to help SMEs close the AI skills gap. Developed with Royal Holloway, University of London, the toolkit includes an AI Skills Framework, an Adoption Pathway and an Employer Checklist – all designed to make it easier for smaller firms to explore automation safely and strategically. The government estimates that effective AI adoption could add £400bn to the UK economy by 2030. The idea is that you don’t need a data science department to begin – businesses can start small and pick one process to test at a time. Find out more here.

Britain still leads Europe’s M&A market

Global dealmaking is showing signs of recovery. According to a BCG report, global M&A value rose 10 per cent in the first nine months of 2025 to $1.94tn. The UK remains Europe’s largest market for mergers and acquisitions, even as domestic deal values fell 35 per cent year on year. Analysts say confidence is returning, driven by easing interest rates and a rise in private equity activity after a two-year slowdown. Reuters has the story.

AI prompt of the week: creating a 2026 trends report

Publishing a "2026 Trends" report positions you as an industry authority, attracts media attention and creates conversation-starting content for the entire year. But most trend reports simply rehash others' predictions. The founders who break through identify genuinely original insights and package them across multiple formats – turning one research effort into months of thought leadership content.

Help me create a comprehensive 2026 trends thought leadership package for [industry/sector]. First, identify major trend reports I should review and compile key themes. Then help me find the contrarian angle or emerging 'weak signals' others are missing that could become my unique perspective. Finally, design a multi-format content strategy: main trend report structure, LinkedIn article series, webinar talk outline and media pitch angles. Include research methodology and timeline to publish by early January.

When your payday depends on performance

Earn-outs are the classic double-edged sword in business sales – a tempting way to bridge valuation gaps, but often a source of tension after the deal closes. They promise upside if growth targets are hit, yet hand control to the buyer when it matters most. The key isn’t avoiding earn-outs altogether, but structuring them tightly enough that “future performance” doesn’t become someone else’s definition of success.

Drop me a line

If any of this sparks a thought – or you’ve found your own way to dodge the next shiny distraction – get in touch, as I’d love to hear what you’re focusing on right now. See you next Sunday.

Cheers!
Adam


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Adam J. Graham

Serial entrepreneur with 25+ years & 2 exits. Led a publicly traded company to £250M+ valuation. I share the strategies that actually work for scaling businesses & developing leaders. 10,000+ founders read my weekly insights on growth, M&A, and building winning cultures.

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