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Perfecting Your Pricing Strategies

You're no blue-light special. Throw in the extras, play to the customer's needs, and get the price you deserve.

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This story appears in the March 2000 issue of HomeOfficeMag.com.

Again and again, I've seen incompetent people earn more than competent people. One reason: They know how to charge. Charge $500 when the customer would have paid $1,000, and you've just tossed $500 down the toilet. Charge $1,000 when the customer's puking point is $500, and you've tossed a customer down the toilet.

Sometimes, it's not how much you charge--it's how you ask. Should you charge by the hour or a flat fee? Go for the big sale or start 'em out with a small one? When's the right time to spring the price on them? What if a customer tries to bargain with you? Should you offer a sliding scale and risk being taken advantage of by fat cats who plead poverty?

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