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Charging more can increase sales without changing the quality of your product, assuming the product is already "good" or marketable. An increased price adds a p

by Nadya 11y ago

Charging more can increase sales without changing the quality of your product, assuming the product is already "good" or marketable. An increased price adds a perceived 'quality' or 'prestige' and you'll get bigger spenders, although fewer spenders. This is because of the bad reasoning that "more expensive = better". My mother did this with her home business by slowly increasing her prices. The product she delivers hasn't changed in the slightest - but she now makes 5x more than she was before! People fall into the trap of lowering their cost to increase buyers without paying attention to how much they are working. They see an increase of price "would ruin them financially" because they would get less clients. Of course, finding the balance is important. There was a story on HN where someone was setting up custom sites for $75. They quickly realized this was more work than they expected and began charging $2,000 a site (after charging more and more per site, from $200->$500->$1000). People were still purchasing. Same work. $75 --> $2,000.

charlesdm 11y ago
Absolutely. I live by this. In contracting or consulting, you want to find critically important projects to work on and then almost shock people by what you're charging. Then overdeliver.
- Nadya 11y ago
  >Then overdeliver. I feel this brings up another important thing. Set realistic expectations. Always set the bar at what they expect while remaining near the bare minimum of what you can realistically deliver...then do everything you can do deliver past that. 1) If you overpromise and underdeliver you give yourself a bad rep and have an unhappy client. 2) If you promise reasonably and overdeliver your client will be happy. Happy clients often lead to more clients. Assuming in 1 and 2 you did the same amount of work and the only difference was you didn't promise them the world and a field of kittens to boot. Marketing for 1 might land you the sale; but that's incredibly shortsighted. 2 will almost always do better for your business. You will likely lose some sales if you market with #2 in mind. However are those the types of sales you want to begin with?

by Nadya 11y ago

charlesdm 11y ago

Absolutely. I live by this. In contracting or consulting, you want to find critically important projects to work on and then almost shock people by what you're charging. Then overdeliver.

Nadya 11y ago
>Then overdeliver. I feel this brings up another important thing. Set realistic expectations. Always set the bar at what they expect while remaining near the bare minimum of what you can realistically deliver...then do everything you can do deliver past that. 1) If you overpromise and underdeliver you give yourself a bad rep and have an unhappy client. 2) If you promise reasonably and overdeliver your client will be happy. Happy clients often lead to more clients. Assuming in 1 and 2 you did the same amount of work and the only difference was you didn't promise them the world and a field of kittens to boot. Marketing for 1 might land you the sale; but that's incredibly shortsighted. 2 will almost always do better for your business. You will likely lose some sales if you market with #2 in mind. However are those the types of sales you want to begin with?