Ever heard the phrase: “People will pay for anything if the price is high enough”?
It shouldn’t be true, but it is.
Here’s why: prices aren’t just symbols of affordability – they’re broader signals.
– Low Price: “I’m affordable, but at what cost?” Using this tier screams “interchangeable with anybody else,” at best, and “I’m here to fill a gap or take the work others won’t” at worst.
– Mid-Price: “I’m Competing on Features” which would be great if the client had time to study features. But they don’t – they have a specific, important and urgent problem. So they hear “I’ll try my best to please everybody” – and while that may be great for non-urgent stuff, it does not look like a good option when your house is burning.
– High-Price: “If I’m this confident, and still in business, I must be very good at delivering.” This tier plays on client’s egos – they could brag about hiring you. High prices are also value anchors – any “deal_”_ you might propose sounds like a steal.
Why does this work? Psychology. Economics. Human nature.
When we are not in trouble, we want the cheapest option – it doesn’t matter who does the job as long as they are professionals. But when we are in trouble – we don’t want just anybody. We want the most confident, most expensive expert we can buy now.
So don’t play the “affordable expert” role – to your clients, and yourself, doing that is a disservice.