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?
Susan Gunelius
Susan Gunelius is the Founder and Editor-in-Chief of Women on Business. She is a 25-year veteran of the marketing field and has authored ten books about marketing, branding, and social media, including the highly popular Ultimate Guide to Email Marketing, 30-Minute Social Media Marketing, Content Marketing for Dummies, Blogging All-in-One for Dummies and Kick-ass Copywriting in 10 Easy Steps. Susan’s marketing-related content can be found on Entrepreneur.com, Forbes.com, MSNBC.com, BusinessWeek.com, and more. Susan is President & CEO of KeySplash Creative, Inc., a marketing communications company. She has worked in corporate marketing roles and through client relationships with AT&T, HSBC, Citibank, Intuit, The New York Times, Cox Communications, and many more large and small companies around the world. Susan also speaks about marketing, branding and social media at events around the world and is frequently interviewed by television, online, radio, and print media organizations about these topics. She holds an MBA in Management and Strategy and a Bachelor of Science degree in Marketing and is a Certified Professional Career Coach (CPCC).
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Thanks for linking to my post. We have a lively discussion going on about pricing over at Work From Home Momma, and it’s not too late to get a word in.
Thanks, Laura!