What price you put on your services or products can be a critical decision. Too high, and you isolate too many people; too low and you also risk not getting taken seriously enough (ie people don’t believe you can provide what you offer at such a good price) or you attract non-serious buyers who just want what you’ve got because it is cheap. So pricing can be quite a dilemma.
There’s a lot of different theories about pricing, and I have even run a whole course on this topic (How to Raise Your Prices, Charge What You’re Worth and Get It!). It raised its head again the other day in a meeting with some colleagues when we were discussing the price point of a new app being developed for the Joyful Parents website with which I am involved. Someone mentioned the power of different numbers.
Once upon a time, there was a very famous, very posh department store in London. When you walked in through the ornate doors, you were welcomed with a hush of opulent splendour, the high ceilings and towering pillars being the perfect backdrop for beautiful displays of perfumes and cosmetics on the ground floor, with ladies and gentlemen’s clothes on the upper floors. This store was well known for its quality merchandise, attention to detail, and wonderful service.
One day, a young woman was working behind the cosmetics counter just near to the main entrance on Piccadilly. The revolving doors moved, and from them emerged a man who looked as if he belonged on the street. His clothes were very scruffy, his beard and hair unkempt and he brought with him a general air of neglect. But he strode through the cosmetics department and disappeared up the staircase. Continue reading →