If things come in three, I’m expecting another example of bad pricing policy to come my way in the next 24 hours. I just finished writing about how my shoe cobbler is leaving money on the table when along came another prime example of it.
We were out visiting last night and some friends were showing us around their $200,000 renovation project, currently under way. In the middle of the tour, my friend Harold explained how they had paid $15,000 for the design of the addition. Then he told about how his designer reduced her price by $750 after quoting on the deal, because, so she said, she had to do less drawings than she had expected.
Has this ever happened to you? After you agree to a price, the seller reduces it. Initially I thought how crazy she was, refunding $750. But then it dawned on me that this might be a brilliant move on her part. After all, she only gave up 5% of her fee, but now she has him telling his friends what an honest business person she is. Maybe she’s crazy like a fox…
I suspect that this move was not pre-meditated; his designer did legitimately over-quote, and did in fact reduce the price when she finished the job.
But as a marketer, I just can’t leave the analysis alone. I like her model for services, at least occasionally. After all, she didn’t really lose much.
What do you think? Let me know by email, or leave a comment below.