Thread: Interesting Article on Handcrafted Pricing

We have similar issues in the photography business; it's hard to reconcile the intangibles but it would be nice to be able to come up with an analogy along the same lines as this article … if a photographer who charges $6k for a wedding were to do a job worth $500 by suspending all their years of experience, knowledge, connections, equipment etc.

Good one Amos, handy to keep around and hand it to the next "customer" who complains that our pens are too expensive.

A pottery friend likes to think of it as an Olympic sport. It may only take an athlete under 4 minutes to run a mile, but he trained for years to do that. So ya don't get paid just for the 4 minutes it took you to run the race.

True, true.

Our firewood is very nicely shaped, isn't it.

Reminds of the story about a machine that did not work. The factory staff tried everything and eventually called in an engineer who walked around the machine and then asked for a hammer. He gave the machine a whack with the hammer and it immediately started working. When he sent in his bill for $200, the factory manager asked why it was so much when all he did was hit the machine with the hammer.
The response was "$5 for hitting the machine, $195 for knowing where to hit it"

The key to charging is to build value. Price is *very* elastic...

I had Mal Emery as a business coach for two years. I had the pleasure of watching him demonstrate this 'price elasticity' fact when he auctioned a single Mars Bar, unannounced on stage at one of his Platinum Business Coaching Schools, that I attended, in Sydney.

He walked on stage and to prove a point auctioned off a single Mars Bar. The final selling price was $140,000 and Ian Marsh, a good friend of mine bought it. He said it was too good a deal to let go. Obviously there were 'bonuses' attached to the sale, but the point is a single Mars bar can be sold for $140,000 and the buyer can walk away believing they got 'a bargain'. Knowing how to do this is a skill, anyone can learn.
It is not hard, when you know how to do it.

I'm a tradesman and I price my jobs at least 20% higher than the competition.
I am always busy because I get so many referrals and my clients *never* complain about what I charge... It is all in perception... Price is only a barrier in *your* mind! not your clients. Many people are prepared to pay a bit more to get a good job. They're the people I work for. My competition are welcome to the 'price shoppers'....


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He's a Roof plumber
few years ago called out to a panel beater in the middle of winter, leak in the venting for the spray booth. Somewhat less than ideal.
The manager said they'd had several guys out and still it leaked.
My guy got up on the roof to find several tubes worth of silicone all over everything...
Found the source, finger full of silicone in the right spot. All over in less that 10 mins.
Asked for $130.00 for call out and fix. Manager baulked at that "you were only here 10 mins"

So they did a deal, next time it rained if it did not leak he'd get double the money. If it leaked he'd get nothing...

Two weeks later a thank you and $260.00 arrived in the post...