My recent conversation with Tareq Hadhad, founder and CEO of Peace by Chocolate, offered a powerful reminder of what truly drives value in a business. Many leaders still treat purpose as something ornamental, something that lives in a brand guideline or a campaign. Tareq views it differently. For him, purpose is the foundation on which pricing, experience, and long term relationships are built.
Most people know the remarkable story of Peace by Chocolate and how Tareq’s family rebuilt their life and business after fleeing Syria for Canada. What stood out to me during our conversation was not just the resilience in that story but the clarity of the company’s mission and how deeply it shapes their commercial decisions. The more we talked, the more apparent it became that purpose is not just emotional. It is strategic.
Purpose Is an Investment, Not a Cost
One of the first points Tareq made is that purpose only creates value when it sits at the center of the business. It cannot be a slogan. It must be lived through decisions, actions, and priorities. Peace by Chocolate was never designed to be the biggest chocolate company in the market. It was built to be the most meaningful. That orientation influences how they treat customers, how they serve their community, and how they think about the future.
From a pricing standpoint, this approach creates something incredibly valuable. Trust. Customers trust brands that show consistency and honesty. When trust is present, willingness to pay rises naturally. Tareq describes purpose as a long term investment in credibility and relationships, and I agree. Nothing drives pricing power faster than a customer believing in the reason behind your business.
What Really Drives Premium Pricing
As we discussed the idea of premium pricing, Tareq made an important point. A premium price is not defined by the number printed on a label. It is defined by the story, the experience, and the level of service delivered around the product. Peace by Chocolate does not rely on exclusivity or luxury cues to justify its pricing. It relies on meaning.
A customer who buys from them is not just purchasing chocolate. They are participating in a story of rebuilding, optimism, and peace. They are engaging with a company that treats every purchase as part of its mission. They feel connected to something larger than the transaction. That connection is what creates the space for premium value.
In pricing, we often talk about functional and emotional drivers of value. What Tareq demonstrates is that when a product carries genuine meaning, the emotional drivers become the differentiator. They shape the total experience and, ultimately, the price customers are willing to accept.
Gen Z and the New Rules of Loyalty
A significant part of our conversation centered on Gen Z, and it is clear this generation is changing the rules for companies everywhere. Tareq describes them as the most values driven consumer segment we have seen. They do not respond to surface level purpose. They look for consistency, integrity, and follow through.
Gen Z evaluates companies based on alignment. They use their wallet to support brands that act with authenticity across every touchpoint. This creates an interesting dynamic for pricing leaders. When authenticity becomes a measure of value, companies that live their purpose can command stronger loyalty and higher willingness to pay. Companies that treat purpose as a marketing tactic, rather than a commitment, quickly lose credibility.
In my work across industries, I see this shift everywhere. Younger buyers are raising the standard for brands, and those expectations are influencing older segments as well. What Tareq said reinforces something I believe. Authenticity now carries economic weight.
Purpose and Profit Can Strengthen Each Other
One of the most compelling parts of the discussion was how Tareq described the way purpose and profit reinforce one another. Peace by Chocolate’s growth did not come from chasing margin at any cost. It came from staying true to their mission over time. That commitment led to partnerships, media attention, community support, and global visibility.
This is the part many businesses overlook. Purpose creates momentum. Momentum builds reputation. Reputation attracts customers. Customers drive profit. When treated strategically, purpose accelerates the business instead of slowing it down.
For pricing leaders, this is a reminder that not all investments are financial. Some of the most powerful investments are cultural and philosophical, the ones that influence how customers perceive your brand and how they justify the value you deliver.
What This Means for Pricing Leaders
Reflecting on my conversation with Tareq, several insights stand out. Purpose creates pricing advantages that are difficult for competitors to copy. Experiences rooted in authenticity drive emotional value, which is often the strongest form of value. Younger generations are reshaping how loyalty works, and their preferences will influence every segment over time. Companies that commit to purpose can position themselves for outcome based pricing because clients trust them to deliver meaningful impact. When purpose is built into the DNA of a business, profit becomes a natural result rather than an objective forced through short term tactics.
Closing Reflection
Speaking with Tareq reminded me that purpose has real strategic weight. It shapes decisions, strengthens brands, and drives economic outcomes. When companies treat purpose as a serious investment, not a marketing message, it becomes a source of pricing power and long term resilience.
If you would like to watch the full conversation, you can find it here:
Interview with Tareq Hadhad, S2E10:
https://youtu.be/wSIFzJwzDUA?si=45l4wYinyjDMJQH8
Explore more episodes of The Pricing Guys:
https://youtube.com/playlist?list=PLLG7W7_yTxP1A3Ro5R5nSpI7lLU3yKfQ0
