Product Pricing: Your Customers Can Afford You

client-pricingPrice is rarely a disqualifier for your products and services if people want what you have. Notice that I said “want”…not “need.”

Let me give you an example. According to a recent study, I live and work in the wealthiest city per capita in the United States.

Yet even with the wealth, there are plenty of people trying to keep up with the next door neighbors but without the pocketbook to do it. Even though they can’t afford the McMansion, they will buy it on credit. They can’t afford the Mercedes or BMW but they’ll lease it.

If you walked into their homes, you would see rooms that have no furniture. Why? Because public impressions are far more important to them. The wants trump the needs.

Yet if you went to a poor neighborhood in most U.S. cities, you’d see “poor” people driving Mercedes, carrying $1,200 purses, talking on $400 iPhones, and paying $150 per month for premium cable television. Speak of iPhones…as I type this at a local restaurant, there’s a minimum wage employee taking a break and using her iPhone…something that would cost her about a week’s take-home pay.

Again, the wants trump the needs.

If someone tells you that they can’t afford what you’ve got to offer, chances are they’re lying. It isn’t price…so don’t cut yours. Instead, find a market that wants what you have to offer, or change your offer.

Author Mike Young, Esq.

Mike Young has been practicing business and technology law since 1994 and is an angel investor in startups. He's been an entrepreneur since 1988. To get legal help from Attorney Young, click here now or call 214-546-4247 to schedule a phone consultation.

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