Do you want to be the Wal-Mart of your niche?

I’ve been thinking a lot about what your price says about you. It’s true that it can be very scary to occupy the high-end niche. Charging top dollar brings up a lot of issue for people. (”Who am I to charge that much?” “Am I really worth charging that much?”) But no matter what you charge, you are conveying a message. If you are at the bottom of your niche, what does that say?

A friend of mine who has heard me speak on pricing issues told me a fun story. She works for a puppet theatre that has many preschools and elementary schools as clients. One day, a woman who owned a local pre-school was sharing with my friend some of her financial frustrations. My friend advised her to start charging more money. The woman looked uncertain and said she was concerned people might not be able to afford her. My friend looked at her and said “You don’t want to be the Wal-Mart of preschools, do you?” The woman was aghast and raised her prices the following month.

What about you? Do you want to be the Wal-Mart of your niche?

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