Everyone has a reaction when seeing the cost of something of interest that exceeded what they were willing to pay for it, but what is the appropriate response to someone who asks a professional why their products or services are so expensive? They might feel put on the spot, tongue-tied, or defensive. They may feel inclined to offer an immediate discount to the price-offended client, or they may feel unfairly challenged when confronted over service and product prices. In order to overcome this reaction, it is necessary to investigate deeper and discover what is happening and why. 

VITAL QUESTIONS

To begin with, what is the true meaning of a high price? Is it the price itself or one’s ability to pay for it? Does it depend on how much the item or service in question is in demand? Can the same thing be bought somewhere else for less money? Are the circumstances in which something is sold influential in the price evaluation? Here are some examples.

A concert is touring that someone is interested in attending. The tickets are $150 each, more than some earn in a full day at work, but this is a once-in-a-lifetime opportunity. Is the price too high?

A store is selling a name-brand moisturizer for $85, but one could get the same item online for $60. Is the store charging a high price? 

A skin care provider charges $200 for a one-hour facial while a nearby spa  charges $125 for their one-hour facial. Is the first provider’s price too high?

Someone’s car runs out of gas in the desert many miles from the nearest town. They are without their cell phone so there is no way to contact help. Someone comes by with five gallons of gas in a can and offers to sell it for $300. Is the $60 a gallon price tag out of question, or is it worth it given the situation?

While shopping, a person sees a pair of rollerblades that cost $250. They once enjoyed blading but after an injury no longer do nor will they in the future. The store clerk tells the individual they can mark them down to $125. They decline. Then clerk offers to sell the item for $75. Once again, the customer decline. Now the price drops to $50, a $200 discount! Will that change their mind about buying them?

Skin care providers must each decide how to price their services and select skin care products that sell at different levels of markup. In making those choices, they will consider how those prices will affect the buying decisions of potential clients. Who is the client they are trying to attract? How much money do they need to stay in business? Moreso, how much money do they need to earn to sustain the business, cover expenses, reinvest in the operation, and set aside for an eventual and hopefully, comfortable retirement? This says nothing about other important goals like buying a house, sending children to college, travel, and long-term healthcare expenses, all of which require a lot of money! How can professionals finance these things if they are not charging enough for their products and services? Well, they cannot.