I recall an instance where someone was delivering a product—a great product—and selling it for $250.00. He was not doing well. An analysis was done, and he was told to double his price. Now this person had serious misgivings about this advice, as he felt that he was not doing well even at the lower pricing, so why would he raise his price? “I am starving with the pricing I now have and not getting lots of buyers. I can’t possibly double it,” he said. And the answer given was, “You are actually creating an imbalanced exchange. You are under-priced.” Remember, truth “is what is.”6 The product was not worth $250.00; it was worth $500.00. So people were not buying it because they felt (innately) it was worth more.
The lower price made them suspicious. They knew it was a great product, so why was he selling it for $250.00?
The solution is not, then—if you are having any problem at all— simply to double your price, but in some specific cases, it might well be good to examine this factor. Beware of this kind of exchange imbalance, shortchanging yourself!
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale
6 Hubbard, Technical Dictionary.