Several things come to mind when we think about how much something should cost or how much we should charge. Supply and demand, value, and desired profit margin are at the top of the list. Often overlooked is marketing. Free isn’t always good and is frequently just the opposite. As much as we all love a deal, a low price for a high-value product or service often just devalues it – whether we realize it or not.
Making the commitment to attend an event when it’s free or close to free is easy – actually attending is another thing altogether. Just because we have access to something easily doesn’t mean we take advantage, paradoxically we often don’t take advantage because of easy access.
The value of anything is subjective and perceived value influenced by price is a very real thing. If you want someone to take your advice seriously, charge for your time accordingly.
Some considerations on price:
- Value – real and perceived
- Exclusivity and status – Status is an innate human trait and we’ll pay more to get it.
- Audience – Who’s buying it and how much will they pay for it? Who do you want to buy it and how should that affect the price?
- Access – What is the right price point to reach as many people as possible? Be cautious when lowering the cost to reach more people – will it devalue the offering?
- Experience – What experience will the customer have with your product or service? How much is the experience worth? Will someone pay more to have the experience you offer?
How much to charge isn’t always a fun conversation. We want what we charge to be fair – and so it should be. Are airport prices fair? I don’t know, but I pay them. I enjoy the experience and maybe I savor each sip more because of it.
