Pricing: When The Customer Is Rarely Right – Small Business Show 25

Shannon and Dave let loose on their favorite pricing secrets, and then let loose on customers who don’t want to follow them (except they really do!). You might agree or disagree with what your two favorite business geeks have to say, but you’ll definitely want to listen!

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  1. Kyle Baccus says:

    Fundamentally, you can almost never be the best AND the cheapest. I do think its okay for some people to run their business based off price and offer little else to be desired. There is a market for that and a customer base that only cares about price. However, I believe its much more enjoyable to run a business the way you are describing where you decide to be the best, figure out how much it costs to run it that way and then charge appropriately to cover those costs. There is also a customer base that is willing to pay more to deal with a better company. The worst thing you can do is try to appeal to both types of customers. Make a choice to be the cheapest or make a choice to be the best and stick with it.

    • shannon says:

      Thanks for the comment, Kyle. I think the key point you make is powerful: “The worst thing you can do is try to appeal to both types of customers.” by trying to be the cheapest and the best – it’s a recipe for disaster!