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The more you charge, the more people respect you?

by natsnumbers
10 replies
“The more you charge, the more people respect you. If you do things on the cheap, people tend to find fault with what you do.” ~ Stuart Wilde

What do you think? Is it true?
#charge #people #respect
  • Profile picture of the author Dennis Gaskill
    As with anything, there are situations where it seems so, and situations where it doesn't. You only have to look at the comments in a few WSO's to know prices, low or high, do not equal respect.
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    • Profile picture of the author natsnumbers
      Dennis, I find the psychology or mindset behind rates fascinating. Could it be that people with the same skill set can simply charge vastly different rates and have two different experiences with their business?

      One charges a lot more, never burns out, has 'high end' clients - while the other is just getting by and has clients that maybe do not value the service or product as much?

      I have heard in different marketing circles that typically those clients that pay less oftentimes seem to cause more trouble (searching for the best deal, are not fully invested, etc.). But that goes against a lot of 'moral' thinking that you charge rates that can help people from all walks of life.

      Anyone have personal experiences and discoveries with this?
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      • Profile picture of the author WarrenPeterson
        Originally Posted by natsnumbers View Post

        ...I have heard in different marketing circles that typically those clients that pay less oftentimes seem to cause more trouble (searching for the best deal, are not fully invested, etc.). ...
        Yes, and a big reason for this is the expectations and mindset of the client going into the relationship. Clients who pay more have a more vested interest in the outcome and are looking for ways to make it work (in other words to justify the cost to themselves). Clients who want in 'cheap' don't have that same level of positive expectation and don't have the same level of vested interest in their success.
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  • Profile picture of the author Aaron Doud
    I think the key is not to low ball. Low ball pricing isn't good for you or the clients and it attracts a group of clients you may not want.

    Of course if you price too high you spend all your time prospecting which might bore people.

    As for where to price that is something each person has to decide for themselves.
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  • Profile picture of the author Jeff Schuman
    That may be true if you deliver value for the price you charge. Otherwise you could be viewed as a thief.
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  • Profile picture of the author biggoogle
    Absolutely. The only problem clients I had were the ones who tried to negotiate my fees down.

    Poor people (whether entrepreneurs or otherwise) are a pain in the ass.
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    • Profile picture of the author Daniel Evans
      Your price need only be lower than the level of value you provide.

      I regard some prices as ultra cheap, however some people might see them as expensive, but only in contrast to other "special offer" products.

      You need only visit the main marketing forum to see people posing the question:


      "Why would anyone give X for only $7?"

      .....in which case I see no need to ever offer anything for $7 (amongst others reasons).


      I'd much rather hear someone ask:

      "Isn't it awesome that this person is giving X for $300?"


      Needless to say I wouldn't set a low price expecting gratitude.

      I'd set a fair price, I'd over deliver and gratitude tends to follow.
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  • Profile picture of the author Raydal
    I know that you are more likely to get complainers and
    whiners from a low-figure product than you are from
    an expensive product. It seems to go with the territory.

    If you are involved in a service oriented business you will
    find that you get more questions and trouble from low
    paying clients than you get from higher paying clients.

    -Ray Edwards
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    • Profile picture of the author Joe Benjamin
      Originally Posted by Raydal View Post

      I know that you are more likely to get complainers and
      whiners from a low-figure product than you are from
      an expensive product. It seems to go with the territory.

      If you are involved in a service oriented business you will
      find that you get more questions and trouble from low
      paying clients than you get from higher paying clients.

      -Ray Edwards
      Speaking from experience, Raydal's right. There
      IS a night and day difference between the two.

      There's no comparison, really.

      It's largely a question of mindset than value.

      Are YOU comfortable asking for $5,000 for sales
      copy over $500...or $500 over $50?

      Sure, results should be reflective in some way of
      the price you're asking. If you're an amateur w/
      no experience in a particular field I'm hiring you
      in, you have to deliver the goods.

      And that's a good thing. Higher prices FORCES
      you naturally to be better at whatever you do.

      It forces you to step outside of your own box on
      what's possible because you demand more of
      yourself.

      ...but when you keep your prices artificially low
      in the hopes you attract customers, there's just
      no way you can grow from it.
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  • Profile picture of the author allianceprocessing
    Ray hit it spot on. Charging more clearly builds more value to the consumer vs charging less. But it also depends on the product; most of the time people know that even if the product is essentially the same, but if one clearly has a higher quality or service - they'll gladly pay more for luxury over standard issue if their pockets can keep up.

    Most basic example would be cars - correct me if I'm wrong but I'm pretty sure there's a clear difference between buying a Kia and an Infiniti.
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