Hourly rate

[Kelly & Bill]

Clyde,

I think I have to agree with Dale on this one.  You may get a few bargain
shoppers that add to your business these days.  However, by your own
admission, your business grows (I suspect mainly) through referrals of
satisfied clients.  Keep up the good work and you will keep your client
base.  Additionally, most business people I know whose prices are higher
than the competition tend to have a higher market share of the business.  I
have also found this to be true of my own "other" profession of photography.
I have often seen others work that is clearly inferior to my own at trade
shows selling better and at higher prices.  I have even been denied entry to
one show in particular, and been told my prices were too low!!  It is clear
to me that a very large part of the public honestly believes in the bigger
is better philosophy, i.e. "if you charge more you must be better."  And,
conversely, if it is cheaper, it must be "cheaper."  I think this would
probably hold true as long as a fee increase does not make your services
outlandishly priced - though even then, who knows?

Regards,
William R. Monroe

----- Original Message -----
From: "Clyde Hollinger" <cedel@supernet.com>
To: <pianotech@ptg.org>
Sent: Saturday, April 14, 2001 6:26 AM
Subject: Re: Hourly rate


> Friends,
>
> I would really be interested in any response to the question below,
whether anyone
> raised the rates too high and then had to back off.
>
> I have a theory.  In times past I didn't charge enough, and I think a few
new clients
> still call me because I had a reputation for charging a meager price.
Nowadays my
> business grows mostly through referrals from satisfied clients, and I
charge a
> competitive rate.  But if I charged much higher than the average, I
suspect I would get
> a reputation for being expensive that would last many years and could hurt
business,
> even if I returned later to a fee closer to what others charge.  I don't
want that
> scenario to develop.  In this part of the country people are pretty
frugal.  Thoughts?
>
> Regards,
> Clyde
>
> larudee@pacbell.net wrote:
>
> > Ron Nossaman wrote:
> >
> > > What happens when we think we're worth more than our customer base
thinks we're
> > > worth?
> >
> > Has anyone tried to find out?  Has anyone raised rates too high and then
had to
> > back off?  Or are we operating on supposition?
>
>
>