Tuesday, February 17, 2009

Price Lists

I was able to retire early because of one principle - I made sure to charge less than the customer had expected.
How did I know what they expected? I asked them. Simple as that. Expensive research, huh.
Typically, I tried to keep my pricing to this ratio:
20% - "You should raise your prices."
70% - "I'm happy."
10% - "Got any coupons?"
Before you think I'm making this up, ask my lovely wife, Rita. She knows it better than I did. She did most of the business while I became an aaaaa-rrr-tist.
When I lectured around the country, I gave my price list to whomever asked for one. Invariably, they thought it was a joke.
But the joke was on them. I'm retired, and those who laughed, aren't.
Many of my clients who said things like, "Wow, Fred, you should raise your prices," volunteered that comment. That was nice. I always tried to give nice people something nice. Free wallets. A hug. Something.
The people who weren't nice had to go out and stand in the parking lot.
We'll talk about that sometime.

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