I have written before about the process of figuring out what your pricing should be in your home business—including how tough it can be to sort out exactly whether to charge by the hour, the project, or some other way. One thing that will come up, especially if you have set your prices on the higher end of the scale, is whether or not you can justify the prices you are charging.
When I write of “justifying” your pricing—I do not mean defending the prices you have set for the products or services you offer in your home business. I am really referring to evaluating whether the product, service, experience, quality, etc. all justifies the price that you are charging your clients or customers. Part of this assessment involves developing an understanding of your competition and your industry market, and part of it requires being able to look objectively at the customer experience and product delivery you are providing for each and every one of your customers.
Generally, a “bargain” experience justifies a bargain price. This is why you supposedly pay less for goods purchased at warehouse stores, garage sales, etc. On the other hand, if you are charging at the high end of the industry scale—your customers have every right to expect that they are getting better quality, better services, and extra perks and flexibility. You have certainly heard the old saying: “You get what you pay for” and so have your clients or customers. They expect that your service delivery will justify the prices they are paying.
Keep in mind that customers and clients tend to expect MORE for their money than you may think is reasonable. While this doesn’t mean you need to give in and offer exemplary product at bargain-basement pricing—just understanding that you are coming from different places will help you to figure out how best to justify your pricing for your business.
See Also: Getting Comfortable Talking About Money