I get the logic of this: if your customers accept your pricing too readily, it indicates that they would be willing to pay more — and therefore, you should price your product or service accordingly.
But I’m not sure I agree with it, because it sounds like making your prices so high that customers find them a burden, and are unhappy paying them, is a good idea.
Do we really want our customers complaining about our prices? Should we in fact always charge the maximum price we can get away with for everything we sell?
Internet marketer Fred Gleeck has a rule for pricing information products: the price should be low enough that if you multiply it by 10, the product would still be worth buying at that multiple.
Therefore, a product with a value of $1,000 should cost no more than $100.
I’m more comfortable with Fred’s pricing guideline than Circulation Management’s advice on pricing so high that customers complain.
Fred’s rule ensures that customers always get more than their money’s worth.
Circulation Management’s rule ensures that they barely or rarely get their money’s worth.
Which do you think is better?