Hourly rate

[Z! Reinhardt]

Some stories out of my personal archives ...

About 20 years ago, long before I thought about becoming a piano technician
but while I was tinkering with the idea of doing something in the name of
self-employment, a jazz pianist I knew in Boston gave me a little hint.
"Charge what you will, as much as you think you're worth."

He then went on to tell stories about some of the comments he had overheard
at the parties he had played at.  "You know, I paid a lot for this guy -- I
knew he had to be real good...."

I can never thank him enough for that advice.  It has worked like clockwork
for me.

A few years ago I got a call from a bargain hunter looking for someone to
work on a well-weathered upright piano she had been given.  I thought I had
discouraged her with my rates.  She called me back about a week later saying
she decided to have me attempt the work because I was the only person who
sounded like I knew what I was doing, and that included the possibility that
the piano may have to be pronounced DOA.

Z! Reinhardt  RPT
Ann Arbor  MI
diskladame@provide.net


----- Original Message -----
From: "Kelly & Bill" <kellybill_m@hotmail.com>
To: <pianotech@ptg.org>
Sent: Saturday, April 14, 2001 8:12 AM
Subject: Re: Hourly rate


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?
>
>
>