Surely you can't put the price up???
Put the price up if it’s too low. I don’t understand this idea that you always have to start with a high price because you can lower it later, while supposedly it’s impossible to go the other way. Try telling that to airlines and hotels, which put prices up and down all the time.
That’s the thought I want to share here in June 2010. But first, I’ll show you my home office and the place where I make Thorborgs Talkshow.
My little home office for the talk show
There’s plenty of mess. I have the questions on my iPad, and I record the Skype conversation itself on my Mac. For Skype interviews, I use a Sennheiser headset, which I find a little easier to work with.
I also show a Blue microphone that I say costs around 500 to 600 kroner, and some equipment from sE costing around 1,500 kroner. Then there’s the stand to put the whole lot on. That’s the equipment and the prices I’m showing back then.
I also have some art on the walls that makes me laugh. One picture shows Tintin looking at naked women, and in another he gets into trouble with the Pope. I make a crude remark about the Catholic Church, which I think causes trouble over everything fun while children are being abused. But I leave that discussion there, because it was actually prices I wanted to talk about.
Put the price up if it’s too low
You often hear the advice: Set a high price because you can always lower it, but you can’t raise it. Honestly, I wonder who goes around saying things like that.
Airlines change prices every day. So do hotels. Supermarkets have offers on some products while raising prices on others. So why should you be locked in when pricing your own products?
I think you should set the price where you realistically believe it belongs. It’s about earnings. Don’t be so concerned with whether you’ve started high enough to lower it later.
If sales are going well and you discover the price ought to be higher, put it up. If people ask why, you can tell it as it is: The price wasn’t right. Now it’s set where it should be.
Try different prices
I’ve put prices up and down on my various products as I saw fit. My experience is that very few people wonder about it or start complaining. You’ll find more of my experiences as an entrepreneur in Iværksætter til jeg dør.
You might sell a product for ten kroner and raise the price to 15, then have a week or two when people buy less because they need to get used to the change. But if 15 kroner is otherwise the right price, I think they’ll start buying again.
That’s my point: Don’t be so afraid of prices. Try different things and see what happens. Start where you think the price should be. If you later discover it’s too low, you can change it. It doesn’t have to be that difficult.
A bit about prices, plus a little look at where I make Thorborgs Talkshow. Best wishes, Martin
0:25 – umiddelbart ligner det er bar underdrenge som reflekteres i iMac’en 😉
Ellers rigtigt sjovt at se dit kontor.
Endnu enga