The smart folks at Firewheel Design have posted their thoughts on the role of pricing in small business success.
Our clients understand that our rates are a good value for the work we provide. Our clients also run businesses and understand that they in turn must make a profit. Raising your prices does not mean scalping. Raising prices ensures stability, excellence-in-work, and profitability for the future.
Pricing isn’t just a tool for completing and invoice or estimate. Pricing is a marketing signal. Pricing yourself low signals that you don’t value your work or consider your product above average. Customers who choose you for your price signal that they care less about your quality. A while back, I stated that an IT project has only three requirements: cost, functionality, and schedule, and that only two of those may be specified. Choosing your business’ product based on price signals that your client doesn’t care either about schedule or functionality (and quality is a function). Price yourself right, and you get the clients you want.
