Frasier: I signed up with a matchmaking service.
Niles: Frasier… a matchmaker? I’m surprised you’d use a professional for something as personal as your love life.
Frasier: Well, I could say the same thing about you and your doula.
Niles: Well, our professional comes highly recommended.
Frasier: So does my professional.
Niles: Well, my professional’s at the top of her field.
Frasier: As is mine.
Niles: Well, our professional charges $200 per hour.
Frasier: Mine charges $10,000.
Niles: [pause] She sounds FANTASTIC. Congratulations, Frasier.
How Much Should I Charge?
Frasier and Niles (from episode ‘Match Game’ in Season 11 of Frasier) illustrate one of my favorite pricing principles to P-E-R-F-E-C-T-I-O-N. Consider this the answer to ‘how much should I charge': MORE THAN YOU THINK.
What you charge affects the way you are perceived. If you charge more money, consumers will not write you off as “too expensive.” They will simply see you as an investment – a good one. Heck, you MUST be a good investment if you charge that much, right?
As Niles says so perfectly, the matchmaker sounds FANTASTIC. He even takes it a step further and congratulates his brother on finding such a professional who must be fantastic if she charges $10,000 per hour.
No, I’m Not Telling You to Charge $10,000 Per Hour
If people tell you you’re too expensive, chances are that you aren’t targeting the right kind of customer. Because if you did charge $200/hour, I can promise that there are people who will be happy to write you the check. So it’s really about targeting.
I also want you to get this takeaway – you do not need to cut prices to get sales. That’s just wrong. So please don’t do it. Because it won’t work.