Pricing question - Would you charge high income earners more for your services?

15 replies
Would you charge a high income earner like a real estate agent, dentist, chiropractor, etc. more for your services? For example, lets say you build websites for a living and "Debbie the house cleaner" wants you to build her a website to help promote her small business. Also, "Donald the dentist" wants you to build him a website to help promote his business.

Knowing that "Donald the dentist" is more than likely making a higher income than "Debbie the house cleaner", would you then charge "Donald" more because you know he can afford it?

Now obviously the price for each website will vary based on the complexity and functionality of the site, but for arguments sake, lets say the two websites are going to be exactly the same.

What would you do?
#charge #earners #high #income #pricing #question #services
  • I wouldn't charge them more. What you could do though is to create a higher end version of your product aimed at that segment of the market.

    Edit: For example, maybe you could ad an email opt-in box, talk about how valuable it is, and then charge them considerably more for that.
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    • Profile picture of the author Victor Chang
      Originally Posted by Long Beach Nathan View Post

      I wouldn't charge them more. What you could do though is to create a higher end version of your product aimed at that segment of the market.

      Edit: For example, maybe you could ad an email opt-in box, talk about how valuable it is, and then charge them considerably more for that.
      Great idea... Thanks Nathan
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  • Profile picture of the author dlundy1
    No, because if they ever found out... you would lose credibility.

    I agree with the above post
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  • Profile picture of the author AndrewCavanagh
    Every project is different so every project should
    have a different price.

    The real issue here is the value you're delivering.

    If all you're doing is putting up a website and you have
    no interest in anything else then it probably should be
    the same price regardless.

    But if you actually work with your clients and brainstorm
    ways to bring them in more sales or more clients, better
    clients, pre-educate prospects so they make better
    customers, follow up with customers and get them to buy
    again...

    That's a WHOLE different story.

    Now you're delivering real value which can be measured in
    dollars and the price you charge can be based on the value
    you expect to deliver.

    Kindest regards,
    Andrew Cavanagh
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    • Profile picture of the author Victor Chang
      Originally Posted by AndrewCavanagh View Post

      Every project is different so every project should
      have a different price.

      The real issue here is the value you're delivering.

      If all you're doing is putting up a website and you have
      no interest in anything else then it probably should be
      the same price regardless.

      But if you actually work with your clients and brainstorm
      ways to bring them in more sales or more clients, better
      clients, pre-educate prospects so they make better
      customers, follow up with customers and get them to buy
      again...

      That's a WHOLE different story.

      Now you're delivering real value which can be measured in
      dollars and the price you charge can be based on the value
      you expect to deliver.

      Kindest regards,
      Andrew Cavanagh
      Ok now you got me thinking, thanks Andrew

      Instead of just offering a one off deal, I should really be considering the cross-sell, up-sell, follow up and all that good salesman type stuff that would compliment my original (basic) package - and then charging accordingly.
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      • Profile picture of the author John Romaine
        Originally Posted by Victor Chang View Post

        Instead of just offering a one off deal, I should really be considering the cross-sell, up-sell, follow up and all that good salesman type stuff that would compliment my original (basic) package - and then charging accordingly.
        Drop the fancy talk. I get the impression you're just repeating "stuff you've heard".

        The price should be set inline with the solution you provide. If the client has a $500,000 marketing budget, and each lead/conversion is worth $5,000, then you shouldn't be providing them with a $1,500 website.

        There's a HUGE difference between being a web developer, and an online marketing consultant.
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        • Profile picture of the author Victor Chang
          Originally Posted by John Romaine View Post

          Drop the fancy talk. I get the impression you're just repeating "stuff you've heard".

          The price should be set inline with the solution you provide. If the client has a $500,000 marketing budget, and each lead/conversion is worth $5,000, then you shouldn't be providing them with a $1,500 website.

          There's a HUGE difference between being a web developer, and an online marketing consultant.
          Huh? Maybe I am repeating stuff I've heard, that's part of the learning the process isn't it? Isn't that how you learnt how to talk :rolleyes:

          No need to be so arrogant John. But thanks for your advice because it does make sense.
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    • Profile picture of the author Brian John
      Originally Posted by AndrewCavanagh View Post

      Every project is different so every project should have a different price.
      The real issue here is the value you're delivering.
      If all you're doing is putting up a website and you have
      no interest in anything else then it probably should be
      the same price regardless.
      But if you actually work with your clients and brainstorm
      ways to bring them in more sales or more clients, better
      clients, pre-educate prospects so they make better
      customers, follow up with customers and get them to buy
      again...
      That's a WHOLE different story.
      Now you're delivering real value which can be measured in
      dollars and the price you charge can be based on the value
      you expect to deliver.
      this^

      as mentioned a few times in this thread, ur price should be determined by what u can offer them. that being said, if someone is willing or outright wants to purchase more, why leave that money on the table? this is done not by offering the same exact service and charging differently. rather, segment ur market and offer services/products that are customized, if only slightly. u not only can generate more rev simply by offering varying price points (for the varying customized packages), but ul often sell a higher quantity because the more specialized ur service is to a specific niche, the stronger it typically resonates w the respective prospect. all we're talking about is supply and demand, certain industries can afford to pay more and as a marketer u should capitalize on this. but for charging more u need to offer more. jay abraham says something to the effect that if our clients want to purchase more, it's our obligation as marketers to give it to them.
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  • Profile picture of the author WillR
    I would always charge clients relative to the results I can achieve for them -- nothing else.
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    • Profile picture of the author Victor Chang
      Originally Posted by WillR View Post

      I would always charge clients relative to the results I can achieve for them -- nothing else.
      Hi Will,

      But "the results I can achieve for them" is kind of hard to measure sometimes. I mean if someone wants me to build them a website, I don't think my payment should fluctuate with how well that website performs. I plan on delivering a product of high quality to my clients, if they don't have the ability to utilize that product to it's full potential, then I don't see why I should have to suffer the consequences and lower my price of payment.

      If I am missing your point, could you please explain?
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      • Profile picture of the author John Romaine
        Originally Posted by Victor Chang View Post

        But "the results I can achieve for them" is kind of hard to measure sometimes
        Exactly my point above.

        A online marketing consultant understands the importance of testing and measuring, and working closely with that client during the duration of the campaign to ensure conversions and goals are met.

        Most web designers will just build a website that looks nice, and leave.
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      • Profile picture of the author WillR
        Originally Posted by Victor Chang View Post

        Hi Will,

        But "the results I can achieve for them" is kind of hard to measure sometimes. I mean if someone wants me to build them a website, I don't think my payment should fluctuate with how well that website performs. I plan on delivering a product of high quality to my clients, if they don't have the ability to utilize that product to it's full potential, then I don't see why I should have to suffer the consequences and lower my price of payment.

        If I am missing your point, could you please explain?
        I am saying that your product or service should be priced relative to the value you offer. The price you charge to create a website shouldn't really fluctuate depending on how much money the person has. You should know how much time and effort and resources go into creating the site and your price should reflect that. You should then be going after the types of people who you know can afford the price you are charging.
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        • Profile picture of the author Victor Chang
          Originally Posted by WillR View Post

          I am saying that your product or service should be priced relative to the value you offer. The price you charge to create a website shouldn't really fluctuate depending on how much money the person has. You should know how much time and effort and resources go into creating the site and your price should reflect that. You should then be going after the types of people who you know can afford the price you are charging.

          Ok thanks Will

          So basically, if I can get new clients for a dentist then that is obviously worth more than a new client for a house cleaning business because a dentist will charge more for his services. Am I on the right track?

          Sorry if this is 'basic business 101' for most people but I'm just trying to get my head around different price structuring. I am still fairly new to the game.

          Thanks for everyone's input
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        • Profile picture of the author Brian John
          Originally Posted by WillR View Post

          I am saying that your product or service should be priced relative to the value you offer. The price you charge to create a website shouldn't really fluctuate depending on how much money the person has. You should know how much time and effort and resources go into creating the site and your price should reflect that. You should then be going after the types of people who you know can afford the price you are charging.
          well put, will.

          i'm further suggesting that if he's dealing w a type of client that typically can afford to purchase more (using victor's example of dentist vs house cleaner), he should have a product or products in place that will most optimally capitalize on that fact. not talking about charging more and offering the same, rather being able to offer more at a higher price point. in other words if they're willing or otherwise want to pay more, be able to accommodate them.
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          • Profile picture of the author Victor Chang
            Originally Posted by Brian John View Post

            well put, will.

            i'm further suggesting that if he's dealing w a type of client that typically can afford to purchase more (using victor's example of dentist vs house cleaner), he should have a product or products in place that will most optimally capitalize on that fact. not talking about charging more and offering the same, rather being able to offer more at a higher price point. in other words if they're willing or otherwise want to pay more, be able to accommodate them.
            Thanks Brian

            I wasn't planning on offering any additional services simply because of the time factor and my inability to perform these extra tasks at a high quality. I guess now I should learn more about outsourcing

            Thanks guys.
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