Time
Whenever someone wants something in a rush, pull out your pocket calculator. The price should go up. Even if you decide not to charge more, mention the possibility and push some buttons for a while. Many businesses post the extra tariff for a rush job. If you don’t have a preset increase for a job or product that has to be delivered with extra speed, at least be aware of the concept and think about charging a little extra for the pleasure of a fast delivery.
Quality
When specifications tighten up, the price must go up. There is nothing wrong with a customer being very specific about the shade of blue or the width of a cabinet, but pickiness comes at a price. It takes extra time for you to be sure that you meet those specifications, and you must factor that into the price.
Quantity
It almost goes without saying that a large order lowers the per-unit price whether you are purchasing widgets or legal services. Is the reverse ever true? Well, yes. If the purchase is so large that it corners the market or takes the supplier off the market, the price should go up, not down. For instance, if someone is buying so much silver that he controls the silver market, make sure he pays a premium for that purchase because after he has cornered the market, he controls the price that you can charge in the future. You and everyone else would be at his mercy. Or if you’re a CPA or a lawyer and one client takes so much of your time that you can’t service any other clients, then you have to be sure that you earn the same amount annually from that one client as you would from many clients. You also have to be prepared in case that megaclient dies or leaves you. This means that this megaclient does not get a price break and may actually pay more per hour than someone else.
Whenever someone wants something in a rush, pull out your pocket calculator. The price should go up. Even if you decide not to charge more, mention the possibility and push some buttons for a while. Many businesses post the extra tariff for a rush job. If you don’t have a preset increase for a job or product that has to be delivered with extra speed, at least be aware of the concept and think about charging a little extra for the pleasure of a fast delivery.
Quality
When specifications tighten up, the price must go up. There is nothing wrong with a customer being very specific about the shade of blue or the width of a cabinet, but pickiness comes at a price. It takes extra time for you to be sure that you meet those specifications, and you must factor that into the price.
Quantity
It almost goes without saying that a large order lowers the per-unit price whether you are purchasing widgets or legal services. Is the reverse ever true? Well, yes. If the purchase is so large that it corners the market or takes the supplier off the market, the price should go up, not down. For instance, if someone is buying so much silver that he controls the silver market, make sure he pays a premium for that purchase because after he has cornered the market, he controls the price that you can charge in the future. You and everyone else would be at his mercy. Or if you’re a CPA or a lawyer and one client takes so much of your time that you can’t service any other clients, then you have to be sure that you earn the same amount annually from that one client as you would from many clients. You also have to be prepared in case that megaclient dies or leaves you. This means that this megaclient does not get a price break and may actually pay more per hour than someone else.
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