Value Vs. Price

Determining what price to charge is not as simple as you may think. Two different prospects may expect to pay two completely different prices. If you quote a standard price across the board, one prospect may be elated while another prospect may think the price is outrageous. You probably could have charged the elated prospect more and may have been willing to work for the second prospect for an amount less than what you set in advance.

• In this chapter, you will learn how to price your product or services in a way that is acceptable to the buyer and ensures you earn as much as possible.
• Have you ever been in a situation where a client or prospective client tells you that you charge too little for your services? We are guessing your answer is “No”.
• It would be nice if a prospective client can let you know ahead of time what they expect to pay so that you may charge higher rates. Although life does not work this way, it does touch upon a very important point. The amount that you charge for your product or service is never too high, if the prospect is willing to pay that amount. 
• If you do a good job showing a prospect the value of your product or service (by easing their motivation while not selling features and benefits), you no longer need to worry about price. You only need to determine at what amount the prospect values the product or service. Car dealerships live by this principle. That being said, you may not like the way car dealerships operate and we are not suggesting you do the same.
• People will pay for what they perceive is offered in value. It is only when your prospective client fails to believe that the benefit they will receive is more than its perceived value, does price become an issue.
• This explains why some professionals bill $95 per hour, while other professionals performing the exact same work can bill $1,000 per hour. What is the difference between the two?  One difference is the comfort level of the professional charging market rates and the second difference is the prospects perceived benefit.