Mark Wickersham says fixed pricing leaves money on the table because you're not charging what clients would actually pay. If a client would pay $1,000 but you quote $750, you've lost $250.
Offering a single fixed price is not value pricing, it's cost plus pricing. It's also wrong every single time. And the reason for that is that every time you talk to a client about price, they will have in their subconscious what economists call a buyer's reservation price. It's more commonly referred to as the maximum willingness to pay. And our goal should be to get our price as close as possible to the maximum willingness to pay, because the extent to which we're below that, we're leaving money on the table. If we quote $750 for a tax return and the client's willing to pay $1,000, we've left money on the table.
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