Power Pricing - Getting the Right Price for Your Products and Services

There's an old joke about the New York City blackout. Power was out everywhere, and the electric company couldn't figure out what was wrong or how to fix it. Finally, they decided that the only one who could solve the problem was a long-retired worker who knew the system inside and out. He came out to the power plant, looked around, picked up a hammer and tapped one of the generators.

Suddenly, lights came on all through the area. Overwhelmed with relief that the problem was solved, they asked how much they owed him. "$20,000," he replied. $20,000? For tapping with a hammer? "Well," he said, "tapping with the hammer is $10. Knowing where to tap is worth $19,990."

There are a couple of lessons to be learned from the joke. First of all, the value is higher when the problem still exists than after it has been solved. After all, if told he could restore the power for $20,000, officials would have written him the check immediately, without question. Afterward, the problem wasn't so urgent--it was solved. Quote your price and get agreement while the customer still feels the urgency (and the pain that you will remove). That's when the value is highest to them. Your agreement can include conditions and guarantees, such as the results you will obtain, and deadlines, if they want assurances about results.

Maintain a little mystery. If they hadn't known that all he did was tap with a hammer, his services would have seemed more valuable. After all, they got the result they valued--the power was restored. Focus on the results, not exactly what methodology will be used. Don't let customers look behind the curtain. (Remember the Wizard of Oz?)

If you are the only one who provides a particular product or service, or you have skills or training no one else does, the value of what you offer goes up. Highlight your exclusive set of training, education and experience. Use unique language to describe what you do. You can also create an aura of exclusivity by screening clients, and only accepting those who meet your criteria. This can work if you have a reputation already, but it can also help build your reputation, if you've got the guts to try it!

Consider what your clients are used to paying, and charge at least that much. If your clients are used to paying $100 an hour, and you come in at $50, you probably won't get the job. On the other hand, if you can show that you are worth $150, you may be able to charge more than the going rate.

Another way to get an hourly rate higher than others is to charge by the project, rather than the hour. For example, maybe you charge $150 instead of $100 an hour, but you get the job done in fewer hours. Get the client to look at total cost, rather than hourly rates. Once again, get them focused on results.

This issue comes up all the time in my publishing classes, where I remind students that they are not selling paper. They are selling the information printed on the paper--information that will improve the lives of the people who use it. Paper is cheap. Useful information isn't.

Keep in mind that the value of your product or service is related to the benefits your customers receive, and how they value those benefits. Present what you sell as solutions to problems, and you can charge premium prices for your excellent products and services.

Copyright Cathy Stucker. As the Idea Lady, Cathy Stucker can help you attract customers and make yourself famous with inexpensive and free marketing ideas. Get free tips, articles and more at http://www.IdeaLady.com/.

In The News:

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Advantage Pelosi in the Shutdown Negotiations  U.S. News & World ReportHis deal-making resulted in Trump Tower and a host of hotels and casinos. Her arm-twisting and cajoling resulted in the Affordable Care Act, a major financial ...
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Belize~ Were all negotiations tried and failed?  Breaking Belize NewsPosted: Monday, January 21, 2019. 8:36 a.m. CST. The views expressed in this article are those of the writer and not necessarily those of Breaking Belize News.
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Democrats say government must be re-opened before negotiations on wall can take place | Watch News Videos Online  Globalnews.caPresident Trump addressed the nation this weekend and said it's time for both sides to listen to each other in order to end the 31 day old partial government ...
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Government shutdown prolongs negotiations over fate of NYCHA  New York Post Unfortunately, like the heat, the negotiations are also shut down because of the government shutdown,” said a person familiar with the talks. “They're having ...
Global trade negotiations: US accuses India and China of eating into poorer nations' relief  Economic TimesThe US said the self-declared development status risks the institutional relevance of the organisation and collapse of negotiations.
Senate Dem: History will judge Trump harshly for 'inept' shutdown negotiations | TheHill  The HillSen. Mark Warner (D-Va.) on Sunday blasted President Trump for his "inept negotiation" to bring an end to the ongoing partial government shutdown.
Washington County Delegation reacts to Antietam Broadband negotiation  WDVM 25WDVM 25 continues to try to work with Antietam Broadband to get WDVM back in their lineup for Washington County viewers.
Pak Invites Indian Delegates To Negotiate Kartarpur Corridor Agreement  NDTV NewsPakistan has invited Indian delegates to negotiate and finalise the agreement on the Kartarpur Corridor for which the stone breaking ceremony was held on both ...
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May's Brexit negotiation has been hapless but the EU could be fairer  Irish ExaminerHeadline May's Brexit negotiation has been hapless but the EU could be fairer.
Australia's MOD rebuffs Sandfire's $63m takeover bid, but willing to negotiate  MINING.comMOD also said it would raise about A$15 million via a share placement and rights issue, with the majority of the proceeds to be used to advance the T3 copper ...
Education Ministry says DLP textbooks procurement not through direct negotiations - Nation  The Star OnlinePUTRAJAYA (Bernama): The Education Ministry (MOE) has refuted claims that the procurement of the Dual Language Programme (DLP) textbooks was through ...
Unions, DPSM salary negotiations quarrel resumes  Mmegi OnlineCooperating unions coordinator, Tobokani Rari, says in fact, the DPSM's actions are not on. In a letter addressed to participating unions, Rari noted that ...
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Ireland will not negotiate with UK over Brexit backstop, says European affairs minister Helen McEntee  City A.M.Sterling dipped this morning as Ireland said it would not negotiate separately with the UK over Theresa May's Brexit deal.
Strawberry sabotage: Lawyers in negotiations  Sunshine Coast DailyLAWYERS for a woman accused of contaminating strawberries with sewing needles are in negotiations with prosecutors over the case, a court has heard.
Bruegel: Lose-lose scenario for Europe from ongoing China-US negotiations  ING ThinkA hastily agreed trade deal between China and the US may ease negative sentiment in global financial markets. But it could cost Europe dearly, writes Alici...
FOX NEWS FIRST: Trump waits on Dems to negotiate in shutdown; Student in viral 'confrontation' speaks out  Fox NewsWelcome to Fox News First. Not signed up yet? Click here. Developing now, Monday, Jan. 21, 2019 - Martin Luther King Day: "Our lives begin to end the day we ...
BUSINESS LAW: Be ready to negotiate for your dream home  Worcester NewsWe all know that moving house is one of the most difficult processes anyone can go through, but that can be made much easier if you are ready to…
POV | Does Trump really understand negotiating? | Point of View  WDRBI'm going to tell you a little secret. I always thought Donald Trump was an expert negotiator. I bought his book, "The Art of the Deal" in 1987. The book talks about ...
Denver teachers voting on a possible strike after compensation negotiations fail  KSTU FOX 13 Salt Lake CityClick here for updates on this story DENVER, Colo. (KMGH) -- After a full week of ongoing negotiations and months of bargaining, Denver Public Schools (DPS) ...
Negotiating cost cuts on Goulburn's performance venue  Goulburn PostA *fresh* appeal to the market to build Goulburn's new performing arts centre has resulted in five expressions of interest. The call followed councillors' rejection of ...
De Laurentiis travels to Paris to negotiate with PSG about Allan: the details  Calciomercato.com english newsOfficially it is a pleasure trip with the family to enjoy Paris, one of the most beautiful cities in the world. The reality behind the mini-trip, however, is the desire to ...
Reds reportedly negotiate extension to complete Sonny Gray trade  YardbarkerThe Cincinnati Reds will acquire pitcher Sonny Gray, according to reports. ESPN's Jeff Passan and The Athletic's Ken Rosenthal have reported that the Reds ...
Commentary: Tips for the next US-China trade negotiations from a career diplomat  Channel NewsAsiaFormer chief of staff at the US Embassy in Beijing, Scott Mulhauser, share some tips for the next US-China negotiations.
We're Ready To Negotiate Shutdown Terms, White House Spokesperson Says  NPRRachel Martin talks to Mercedes Schlapp, White House director of Strategic Communications, about the stalemate keeping the government partially closed.
‘How I negotiated a $1500 rent reduction’  NEWS.com.auOver the past ten years I've willingly helped numerous homeowners chip away at their massive mortgages while I've sat back, chomping on my smashed avo, ...
Republican senators discuss including DACA in wall negotiations  NBCNews.comRepublican senators are separately discussing expanding negotiations over the wall to include additional immigration issues, such as relief for DACA.
China Grants Ivanka Trump Five Trademarks as White House Continues Trade Negotiations With Beijing  NewsweekIvanka Trump has been granted five trademarks from China for her currently defunct company as her father's administration continues negotiating with Beijing ...
Negotiating with Bullies  Psychology TodayBullies tend to have high-conflict personalities. They are predictable, impulsive, and rigid thinkers. Here's a few tips for dealing with them in negotiations.
Wright State administration makes offer to negotiate new contract; faculty union declines  Dayton Daily NewsWright State University's faculty union will decline an offer made by the administration this week to begin negotiating a new contract ahead of a strike planned for ...
‘He’s a gut politician’: Trump’s go-to negotiating tactics aren’t working in shutdown standoff  Washington PostLawmakers of both parties are frustrated by President Trump's vacillating approach as he demands a portion of his border wall in exchange for reopening the ...
Stocks rise after report says US considering easing China tariffs during negotiations  CNBCStocks rose on Thursday on the back of a report that said the U.S. could ease tariffs on Chinese goods during their trade negotiations with China.
Gabbard blasts Trump for televised proposal to end shutdown; says negotiations 'shouldn't be done on television'  Fox NewsRep. Tulsi Gabbard, D-Hawaii, slammed President Trump on Sunday for his televised announcement the previous day offering temporary protected status to ...
Trump changes his negotiating style with latest proposal  American ThinkerLost in the hullabaloo over the government shutdown is a notable change in President Trump's negotiating style and tactics. Trump has cultivated a reputation as ...
School textbook purchase: Printers hit out at MOF over direct negotiation  MalaysiakiniMalay Printing Entrepreneur Association Malaysia has questioned the Finance Ministry's (MOF) decision to give approval for the acquisition of textbooks through ...
Westherspoon in negotiations with Canterbury City Council to open hotel at Saxon Shore in Herne Bay  Kent OnlineA national chain of pubs has begun talks about opening a hotel above one of its seafront bars.
Theresa May gives a statement to MPs regarding Brexit negotiations  Belfast TelegraphTheresa May makes a statement to MPs following last week's rejected Brexit vote and denies reports that the government is re-opening the Belfast agreement.
Pence compares Trump to Martin Luther King Jr. over his border wall negotiations  AOLThe day before the Martin Luther King Jr. holiday, Vice President Mike Pence compared President Donald Trump to the civil rights icon in advocating for a border ...
Congresswoman Joyce Beatty: Open government now, negotiate wall later  NBC4i.comThe showdown over the partial government shutdown is about to drag on into its second month and neither President Donald Trump nor congressional ...
Shutdown talks: Trump tried to negotiate with rank-and-file House Democrats. None of them showed up.  Vox.comPresident Donald Trump tried a new strategy to get his border wall by going around House Speaker Nancy Pelosi, Politico reported. He failed spectacularly.
Pelosi on negotiations with Trump: ‘Nothing for the wall’ | TheHill  The HillLikely next House Speaker Nancy Pelosi (D-Calif.) reaffirmed that Democrats will not give in to President Trump's demand for $5 billion for a border wall as part ...
LAUSD teachers' strike: Hours of negotiating behind closed doors  Los Angeles TimesAs the LAUSD teachers' strike heads into its first weekend, bargaining teams for the teachers union and L.A. Unified continue negotiations behind closed doors.
School board to negotiate permanent Superintendent contract with Stratton  Hernando Sunby KATHRYN DENTATO Hernando Sun Writer JAN. 8, 2019 Hernando School Board Meeting- For nearly 40 minutes, the school board heard comments from ...
Man Utd news: One player ‘complicates’ Anthony Martial contract negotiations | Daily Star  Daily StarMANCHESTER UNITED star Alexis Sanchez is complicating Anthony Martial's contract negotiations with the club, according to reports.
TVEyes Will No Longer Carry Fox News in Negotiated End to Big Copyright Fight  Hollywood ReporterFox News has fully prevailed in a copyright lawsuit against TVEyes, a media monitoring *service* that allows its users to find and share clips of broadcast news.
Denver teachers to vote on strike after negotiations fail  FOX 31 DenverDENVER -- Denver Public Schools and the teachers union were unable to reach an agreement on teacher pay Friday, setting the stage for a vote on whether ...
Giuliani: Trump negotiated to build tower in Russia through Election Day  New York Post President Donald Trump engaged in talks to build a Trump Tower in Moscow, Russia throughout his presidential campaign up until Election Day, Rudy Giuliani ...
Whanganui mayor rubbishes group's call for referendum on iwi negotiations  New Zealand HeraldWhanganui mayor Hamish McDouall has hit back at the Ratepayers' Association's call for a referendum on Treaty negotiations - saying the association does not ...
Keep calm and carry on negotiating, Letters in Print News & Top Stories  The Straits TimesI found myself shouting "bravo" on reading Mr Cheng Shoong Tat's letter (Time S'pore responded like-for-like to Malaysia; Jan 15). It was a primal reflexive ...
Is Israel negotiating prisoner exchange with Hamas before April elections?  The Jerusalem Post - Israel NewsIsrael began negotiations with Hamas using a European country to secure the release of Israelis held by the terrorist group, Arab media reported.
No deal in sight as strike date nears for Wright State  Dayton Daily NewsWith two days until some of Wright State University's faculty is set to strike, both the union and administration remain dug in on the issues that divide them.
Ministry refutes claims DLP textbooks procured via direct negotiations  Malay MailPUTRAJAYA, Jan 21 — The Ministry of Education (MoE) has refuted claims that the procurement of the Dual Language Programme (DLP) textbooks was ...
ANMF Tasmania to escalate industrial action amid public sector wage negotiations  Tasmania ExaminerNegotiations between the state government and public sector health workers remains ongoing, after a meeting on Thursday failed to reach a resolution.
LPD Crisis Negotiation Team's skills highlighted after suicide attempt on flyover  EverythingLubbock.comMonday morning, police helped a suicidal person get to a hospital safely after he stood on the ledge of a freeway overnight. Thankfully, that man is okay now ...
Rival militias negotiate truce in Libya's Tripoli  ABC NewsLibyan security officials say a temporary cease-fire has taken hold in the capital of Tripoli, after deadly fighting between rival militias that dominate the city flared ...
Liveblog: Follow Denver's teacher pay negotiations here  Chalkbeat ColoradoDenver Public Schools administrators and Denver Classroom Teachers Association, the teachers union, are scheduled to meet all day Thursday and Friday, ...
Hint of new negotiations as Los Angeles teachers strike for 3rd day  CBS NewsTeachers are pressing for higher pay, smaller class sizes and more support staff.
Manny Pacquiao Vs. Adrien Broner Preview And Odds; Joshua Vs. Wilder Negotiations: Boxing Biz  ForbesThere are plenty of reasons to watch Manny Pacquiao vs. Adrien Broner. Here are three of them.
What to know about Denver's teacher pay negotiations, and how to watch them  Chalkbeat ColoradoDenver Public Schools and the Denver Classroom Teachers Association have been negotiating for more than a year against a backdrop of widespread protests ...
Pence’s pickle: How to lead shutdown negotiations for Donald Trump  Global NewsPence has been one of the Trump administration's most visible emissaries during the shutdown fight, meeting with lawmakers, sitting for interviews and leading ...
Negotiations To End Government Shutdown Haven't Made Much Progress  NPRThe partial government shutdown is affecting around 800000 federal workers and may last into January. The shutdown hinges on a debate between Democrats ...
McConnell takes back seat in shutdown negotiations  CBS NewsThe Senate majority leader is deferring to President Trump, as the longest shutdown on record drags on.
DPS, teachers continue to negotiate as strike looms  9News.com KUSADENVER — In the final efforts of trying to avoid a teachers strike, there is one person in the room who does not have to be there. "I have had kids in the district ...

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