How To Price Your Business Services

| By Mike Michalowicz (Google+)

Prospects and customers see price as a reflection of value. Ironically, lowering your prices may in fact scare customers away, because they believe you are low quality. Increasing prices on the other hand, may give prospects and customers more confidence in your offering. This is a lesson you can learn, from all things, prostitutes.

Posted in Behavioral Influence, Money Strategies, Video,

4 Responses to “How To Price Your Business Services”

  1. Maru says:

    HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!! I cannot believe you use prostitution for an example! I do use them as example all the time, God bless them!

  2. It’s so true (not the prostitute thing, I wouldn’t know anything about that of course).

    2 years ago I started a simple dog walking/pet sitting business. Right from the start I decided to charge the top end of the scale.

    Keep in mind, a reasonably competent 14 year old can walk a dog. But I charge upwards of $30/hour and am booked pretty solid, have a nice list of long term clients, and make a pretty decent living considering that I play with dogs all day.

    Do some prospects think I charge too much? Of course! But the ones who become clients do so because they expect someone who’s reliable, professional and personable. All I have to do every day is simply deliver on that promise.

    The point? If someone can charge/earn a premium in an industry like mine (one that’s a lot of fun and with a low barrier of entry), then it should be possible in every other industry conceivable, no?

    BTW Loved the Pumpkin Plan.

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