No Thank You, That is Too Cheap
This is a short article for business people on the topic of pricing.
But it is also something to think about the next time you don't want to pay very much for something.
I saw an advertisement recently, which, effectively, was reassuring me that the advertiser was to be counted on to supply me with the cheapest laser eye surgery I could get. I am not naming names, because I have over simplified. But this was definitely the impression the advert gave me.
I was not, after reading it, thinking so much about the health of my bank balance. Instead I was imagining myself laying on the post operative bed with smoke rising to the ceiling from my smouldering eyeballs.
I can think of a few purchases where I might care mostly about the price. But not this one. On this one, don't talk to me about the price in these terms. I want the absolute best laser treatment there is. I do not want to be on fire afterwards, but to have improved eyesight.
So, business people. How important is your product, and how much does it matter if you don't do it properly? And how confident are you that you can do it properly? Because if you are good, and your thing matters to me, that might influence the price I will pay for it.
I am not of the camp that glibly advises people to double all their prices and order up a Lear Jet. There is the market to understand, and the value to think about, and all sorts of stuff. And you might be able to profitably be cheaper than a rival, and that is all fine.
But what is your proposition here? The cheapest? Or something I can be utterly confident about?