We all know that it takes money to make money. If you want $10,000 a year in passive interest income at a rate of 2%, you’ll need $500,000 in capital to get there. If you’ve only got $25,000 in capital, well then here’s $500 a year, just enough to buy yourself a round-trip ticket to Hawaii. Wait a minute, that doesn’t sound too bad!
I’ve been highly anticipating the response to my introductory $980 Get On The Map (GOTM) service where I help bloggers and small businesses get noticed on the web. There’s a lot of art behind the science of pricing. Price too low, and you might be signaling an inferior product or fend off too much demand. Price too high, and you might not get any clients. Finding the intersection between marginal utility and marginal cost is a journey that changes over time.
Going about pricing a product out of the necessity of money vs. the necessity for fulfillment is quite different. I get fulfillment out of helping others by providing more value than the price I charge. That’s what keeps me excited. If I had to sell something to put nutritious McDouble cheeseburgers on the table for five children everyday, I’d feel the heat, underprice and likely provide poor value.
THE VALUE OF TIME IS DIFFERENT FOR EVERYONE