In some cases, "CHARGE MORE!" is bad advice. Let me explain.
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In my town, there are two barber shops side-by-side. Barbershop A is booked 4 months in advance, and charge $38 for a haircut. They can't take walk-ins, they're too busy! Barbershop B is rarely busy. They'll take walk-ins. They charge $25.pic.twitter.com/PQIXGHtLSJ
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What should Barbershop B do? If they "charge more" will their business magically improve? Of course not.
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A business' capacity to charge more depends on a number of factors: 1. How the customer perceives your product's value 2. The intensity of the customer's desire for your product 3. The availability (supply) of your product vs demand 4. Your customer's ability to pay
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How did Barbershop A manage to "charge more?" They didn't start at $38. When they opened their doors initially, they charged what everyone else did. BUT, they differentiated their product. They had superior service. They responded to the emotional desires of their clients.
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Gradually, over time, demand for Barbershop A increased. Clients had to start booking appointments months in advance. THAT'S when they increased their prices: when there was clearly an intense demand for the product. "Charge more" only works when there's sufficient demand.
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W odpowiedzi do @mijustin
Maybe Barbershop B would be taken more seriously by customers (greater perceived value) if they increased their prices? I think that's the point behind Charge More
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There's so much more Barbershop B would need to do to compete with Barbershop A before they could consider increasing their price: - Nicer location, design, logo, feel (the packaging) - Higher quality, and better trained, barbers - Building relationships with potential clients
Wydaje się, że ładowanie zajmuje dużo czasu.
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