What do Customers Expect for the Price?

Price sets customer expectations and also tests your bravery as the salesman.

If you charge a higher price, or premium price, customers will expect premium service.

They will likely have shopped around or will shop around and they should be able to find other prices and see the range you're in.

If you charge a premium service, then it's good to be upfront and let them know this. You should also be able to back up your pricing with what you can deliver. If you do charge a premium service, don't give them a quick quote over the phone. Get a face to face appointment with them to show the reason behind your pricing. Otherwise, they'll dismiss you as being too high.

If you charge a price that's really low, then customers will not expect much service. But is that how you want them to perceive you?

In any industry, the company that charges a low price and tries to customize the service is going straight out of business because the profit margin is too thin to guard against future business slowdowns, mishaps, or not be able to cover the overhead.

So if you end up with a midrange price that's competitive with others in your industry then how will you differentiate yourself in the service you deliver and setting customer expectations?

Pricing is a strategic matter and it directly affects how customers will view your business.

Regardless of the price you charge, the customer who pays you must understand they received proper value for what they paid and that you appreciated their patronage.