If everything used “value based pricing” a bottle of water would be $100.
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For example, does the “charge more” advice apply regardless of context? If we’re in a recession should we charge more? If the industry standard is to pay $1000, should we charge 2x more? If you haven’t had a sale in 3 months, should you still charge more?
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Certainly: If you’re serving enterprise clients, you should charge more because you’re going to have to put up with a lot of bullshit. If you’re charging $100 / hr, but everyone else in your industry is charging $200, you should charge more (especially if you’re as good).
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But the answer can’t always be “charge more.” There’s no nuance in that answer. We treat “charge more” like a pricing panacea. Pricing a (given product) in a (given market) is more complex than that.https://justinjackson.ca/charge-more
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Also, remember what happens when you’re on the receiving end of someone raising their prices. When companies like Netflix (b2c) or Intercom (b2b) raise their prices, you probably don’t like it.
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@nathanbarry says: “Sometimes, it’s good to leave a surplus of value on the table.”https://nathanbarry.com/value/Pokaż ten wątek -
Generally, your pricing should reflect: - the value you give, - the market segment you're targeting, - the economy (weak/strong) you're in, - the stage of your company, - customer demand. "Charge more" can be good advice. But, depending on the context, so can "charge less."
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