Laura Spencer from Work From Home Momma published an educational post called “Should You Set Your Initial Price Low to Get Clients?” yesterday. While the post is targeted to work-at-homers and freelancers, I think the points Laura makes can apply to any business that struggles with the balance between setting prices that will generate an income and setting prices that attract customers.

As a freelance writer, I am constantly amazed by the low payment other freelancers are willing to accept for their services often earning far less than minimum wage. Of course, everyone needs to start somewhere to build experience and credentials, but I agree with Laura that by undercutting prices you’re only hurting yourself and your long term potential for success.

Check out Laura’s post about pricing strategies when you get a chance. She includes a number of helpful links to help you develop the best prices for your business.

What do you think about low-balling prices to drum up short term business?