Have you heard the story about the electrician who fixed a big problem his customer was having in 5 minutes and charged him $5,000?
Customer took one look at the invoice and instantly felt rage, “$5,000 for 5 minutes?!?!”
On the invoice the electrician wrote:
– $5 for pushing button
– $4,995 for knowing which button to push
Now, don’t get me wrong, I know the electrician is not being professional and not stating why he is worth $5000, but it is the principle behind his mentality I respect.
This is one of the most common misconceptions we see in all industries: Customers thinking they only have to pay for your time. So many businesses fall into this trap and under-price themselves as a result.
The reality is, customers are actually paying for your experience and the results you can get them. NOT your time.
Why would you be financially penalized for being faster than someone who doesn’t know what they’re doing?
The fact that you can do it faster without compromising results is a selling point in itself. That’s why different levels of experts have different price points.
In the example of the electrician, the hours of training he’s had, thousands of systems he’s fixed and lessons he’s learned added up to him being able to fix this customer’s system in 5 minutes without breaking anything else!
That’s worth a lot.
So, the next time someone says to you “this person is so much cheaper” or “but it only takes you an hour”, explain to them the value of your experience and the results they will get because of it.
You will be happier with the business you built if you think about this story the next time you make a sale.
If you want to talk about your prices and know for sure you are selling yourself for the right price, feel free to reach out to me so we can tackle this together!