Why some high prices are accepted and others aren’t
The psychology of premium pricing
You’ll happily pay £95 for afternoon tea at The Ritz, which is sandwiches, scones and a bit of cake. You would not pay £95 for the same sandwiches, scones and cake on the counter in Pret. You’d think somebody had lost their mind.
The food isn’t the difference. What’s changed is what you’re comparing it to. Before anybody looks at your price, they’ve already decided what sort of business you are, and they’re checking whether your number is normal for that sort of business. Not whether it’s fair, or whether the work is good. Just whether it’s normal.
That’s the problem most small businesses have. The work is excellent, the price is reasonable for the work, and it still reads as a cheek because everything else about them looks like something much cheaper.
In this video I explain how that judgement gets made, the two things that decide which group you get put in, and what to say when somebody tells you you’re too expensive.
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