How much is too much? What will our market bear? Is there enough profit for R&D and growth? Every business owner must ask and answer questions about the pricing problem, and the answers will set the company trajectory.
Technology advances and the internet appear to be driving the commoditization of everything. But there is one thing that cannot be commoditized – you, your art, the way you do what you do. Take my friend David, an electrician by trade, he is an artist. I cannot remember how we met, but after contracting his company to work on several projects and seeing the excellence of his work, I was sold. Where does price rank when dealing with someone who is an artist and puts their heart into their work? That’s right – it’s way down the list. He can charge what he needs to charge to make a good profit so he can continue to provide for those around him and grow his business.
Seth Godin wrote a beautifully simple blog post that really nails the psychology of pricing. Your pricing has a much more profound effect on you than your customers. If you sell yourself short, I promise, you will be stressed and overworked. Charge enough to do what you do.