Commitment Pricing

14 July 2008 at 4:44 pm Leave a comment

We’ve all been there…trying to determine how to price your services often seems to be the biggest struggle i our business. Charge too much and you’re afraid you’ll lose clients. Charge too little and you can’t earn a living.

But take another look at those statements. Charging “enough” to make a living doesn’t really seem like very satisfying goal. Instead of just looking at your costs, your competition, etc. why not look at your clients. How much should you be charging to get committed, sing-your-praises clients AND to deliver the level of service, training and expertise they deserve?

Being in business costs money, and the costs keep going up every day. When you charge less than you need in order for your business to thrive; you’re not just short-changing yourself financially, you’re depriving your clients of the full experience, benefit and range of services they should be getting from you. You’re not committing fully to them, in terms of what you’re willing to offer, because you can’t afford to do what you’d really like to do for your clients. 

Commitment Pricing is especially important for designers because this business is not based on need or necessity. It’s not commodity selling, because commodities—something that is widely available and has little or no distinguishing characteristics—is what design is emphatically NOT!

Any consumer, when willing to invest in something customized, something unique and distinctive, usually recognizes that the higher price for such products and services carries with it a commitment on both sides. For the seller to deliver, service and respect the investment of the buyer; and for the buyer to appreciate, value and respect the seller.

Think about some of your recent purchasing decisions: Are there any examples of commitment pricing you can identify and apply to your own business?

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Entry filed under: Client Relations, Pricing. Tags: , .

Mario, oh Mario! Commitment Pricing, Part 2

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