How to Get Clients to Pay a Premium Price for Your Services

Have you ever really considered how price affects your customer with regard to their perceived benefit? Too often, we use a simplistic approach to determining a price—figure the cost to produce a product or service, tack on some arbitrary percentage, and call it good, right?

Price, though, is consequential in ways we may not initially consider. The price a person pays for something goes a long way toward determining the perceived benefit they expect to get from it. The perceived benefit cuts two ways. First, the expectation of service goes up the more a person pays for something. Second, the perception of what they're gaining also goes up with the amount they pay. The two are not opposites; they work in tandem. And in nearly all businesses, this tandem relationship can and does work to your advantage.

Many companies, hopefully including yours, are known for delivering incredible service. This quality service may be what your customers comment upon and why they are willing to refer you to other customers. This level of service comes at a price. One of the things you always should be doing is explaining to and showing your customers how your level of service helps them.