Are You Charging What You’re Really Worth?
From my experience most people aren’t. I'm constantly told its hard to raise prices but that’s usually from people who don’t value their own expertise. Nothing is easy in business but this is crucial if your business is to survive.
We all pay what the plumber asks for because he’s the expert. He knows what to do to fix the problem and so we pay what he asks. We might moan about the price but we’re so pleased the heating is working again that we pay.
I’m sure you’ve heard the story about the engineer who charged £10,000 for 10 minutes work.
The short story version is….
The engineer was called in to solve a problem with a critical machine that had broken down. He looked at it and hit it with a hammer and its started working again.
His invoice said:
£50 for using a hammer
£9950 for knowing where to hit the machine
Similar stories have been written related to every industry. Alongside advice to put a zero on the end of your quote!
Not convinced yet?
A bar of iron costs £5.
Make it into horseshoes its worth is £12
Make it into needles and its worth is now £3500
But if you make it into balance springs for watches, its worth soars to £300,000.
Related Article: Raise Your Prices the Easy Way
Your own value is set by what you are able to make of yourself. But you must clearly understand the value of the problem you solve for your customer.
Now, is it time to review your prices?
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