Short video by Mike Andes advising business owners to raise prices to capture higher perceived value; explains that customers have varying perceived value and raising prices will lose low-value perceivers but increase profit from those who see high value, resulting in doing less work and making more money.
If you look at all your potential customers, they're going to have different levels of perceived value with your services. Some are going to think it's basically worthless, and others are going to think it's worth a lot. Now, when you set your price, anyone that doesn't have the perceived value high enough, you will not get them to accept the job. Now, everyone above that line will accept the job because value is higher than price. Now, when I raise prices, yes, I will lose some customers because they do not perceive the value to be higher than the new price. But also I will gain all the extra profit that is associated with everyone else that a huge amount of value discrepancy between what I was charging. So in essence, you're going to do less work and make more money.
