Colin Sprake argues most entrepreneurs underprice by chasing low costs instead of value. A wedding photographer raised rates from $5,000 to $25,000, cut volume in half, and kept the same revenue. Higher prices signal quality and anchor customers to see lower tiers as bargains.
How to price your products the right way. And most entrepreneurs get this completely backwards. It's really not about lowering your price or pricing the cheapest because that's not really getting this. It's understanding what is valuable, what it's worth to your customer. At the end of the day, customers buy because of their own volition. I want you to think about this for your business. Are you offering a premium offer to certain customers? Because when you offer a premium offer and then they see maybe a reduced offer, they will be like, oh, this is super awesome. They can then decide on what they want to do themselves. At the end of the day, people buy your value. People will buy where you're at. I see this frequently. I remember working with a photographer that did weddings. He was charging $5,000 a wedding. I said to him, let's get into the high-end market and charge $25,000. He said to me, Colin, that's impossible. Guess what? He now does $25,000 a wedding. He only does 8 weddings a year and he makes $200,000. If he was charging $5,000, he would have to do 40 weddings to make $200,000. Pricing is very important in the hands of the beholder. In the hands of the, you know, the customer that is buying from you. In fact, sometimes raising your prices tells customers about value of who you are. There's a lot of psychology in pricing, and I want you to think about this for your business. Are you undercharging for what you do? Are you at the bottom of the price point? Are you dropping your price? I can tell you one thing, where your worth is and what you are charging is a ton of money on the table that you're leaving behind and that you're not getting for your services or the product that you're offering. Make sure You are selling your worth, getting what you're worth, and charging what you are worth.
