February 24, 2023
But that’s not fair!
Let’s say you’re extolling the virtues of value pricing to a colleague, and they say something like:
“Wait a sec... with value pricing, you charge different clients different amounts for the exact same thing?! That’s not fair!!!”
How might you respond to such an emotional outburst?
Here are a few options for you to choose from:
- “Are you against senior citizen discounts at the movies?”
- “Are you against educational discounts for students and teachers?”
- “Are you against parity pricing for customers in emerging economies?”
Here’s the thing...
In a service business, no two engagements are ever “the exact same thing.”
But even if they were, it’s not uncommon for sellers to price the exact same thing differently for different people.
Value pricing is not gouging and it’s not an attempt to take all of the buyer’s money and it’s certainly not a license to print money.
In fact, value pricing REQUIRES that you charge LESS if the client’s buying power is low.
(Of course, whether or not you choose to work with clients who have low buying power is completely up to you.)
Yours,
—J