Jay Shepherd has great insight into the concept of pricing for professional services, a topic for which I share his passion. About two years ago, he wrote an outstanding article, "What if Apple Stores Billed by the Hour?", which I highly recommend.
Jay has published a new article, "Learn About Pricing in the App Store", that again applies Mac-like principles to the pricing of professional services. I have highlighted a few quotes below:
- Pricing is difficult, in any field. Pricing professional services is so difficult that most professionals don’t even do it, choosing instead to bill their time.
- All developers and anyone else who prices their knowledge should take the time to read [Oliver Reichenstein's expansive post on Information Architect's site explaining the pricing process.]
- In the eyes of the customer the value of a product is not proportional to its production cost. …. The customer doesn’t care how long it took you to do something. What customers look at is the exclusiveness and direct benefit of your offer.
- If your offer is exceptional, your price can and should be. If you offer an exceptional product at low price it will be perceived and treated as a low value product, no matter how amazing it is.
Trust me, it is well worth your time to read Jay’s entire article by clicking here. I am a big fan of Jay’s, and I applaud him for his devotion to and hard work in this area.