Whether you are the one receiving a price quote, or having to deliver one to a prospect, The Price Quote is notorious for inducing anxiety! Here’s a new perspective. The question of “why this price” has a 2 sided answer. I’ll lay it out for you with a story. 

I have a large “sunroom” in my home which has served different purposes through the years. Last year it became the headquarters for Clear Path Strategy. A narrow, long room, the left half held everything I need to run my business. But the right half was empty, sad and abandoned, because 4 years ago the electricity in that area stopped working. Friends and family members who like to fix things were unable to figure it out. 

I had plans for that side of the room, but nothing could come to fruition without a resolution to the problem. I was finally able to bring in an electrician. His crew arrived and within 15 minutes, light fixtures which had been dark for 4 years turned on. I felt like Thomas Edison looking at the light bulb for the first time! They tackled other electrical projects around the house, all well done. Then the bill came: $785. 

He clearly listed every material that was used in the projects, the number of hours (4) and the number of individuals (4). It was complete and detailed.  

But that’s only one side of the mirror. Let me show you the other side. 

What The Customer Really Needs 

What did I want that room for? What was a lack of electricity preventing me from accomplishing?

For the last 2 years I kept saying, “someday I’m going to make that my home gym”.  

I HATE working out on my own but I hate going to the gym. Personal trainers are awesome, but they are very expensive. And, you know, COVID. 

What did $785 buy me? Aside from small projects in other parts of my house, I now have a functional home gym with working lights, fan, TV with an Amazon Fire Stick, and an elliptical machine. I now work out every morning with an online membership and my home equipment. I can work out in the evenings because it’s perfectly lit. I LOVE my home gym and just looking at it makes me smile. 

Because of electricity, I can work out. Because I work out, I feel great physically and mentally. I’m thrilled to have a home gym, which, until the electricians came, was a dream.  

From the business perspective, they were able to bill for time, human resources, know-how, and equipment. But from the customer’s perspective, I’m finally making my vision of a home gym come true.  

What’s the price tag on becoming healthy? What’s the value of lowering my weight and blood pressure? I would have paid $1200 and thought it was perfectly reasonable. So yes, $785 is cool.  

To design your price, consider both sides of the mirror: 

  • account for your time, expertise, certifications and training, team members, materials, etc. 
  • discover what your service means to the customer on the deepest level. What will this enable them to do that they cannot without you?  

With that full appreciation, now you have a price that is value-driven and appropriate.