Friday, August 21, 2009

Pricing

There has been an interesting series of pricing posts over at The Client Revolution. It's a legal site where the company charges fixed prices for certain work as opposed to billing by the hour. There is one on Jet Blue's fixed price and another one about a barbershop. They're interesting ideas, and I think they work well if you can drive some volume.

Sure you'll have people that take advantage of it. You have to ignore those people because someone will always look to game the system. And some of them will spend the time and effort to save money. Provided you can get enough people interested to try things, you'll make up for those few.

I sent it to my partners in the training business, and we're considering doing something like this. Sure we'll have a few people that want to train a lot, but if we could drive a couple extra people a month to try us out, even if they came back every month, it would be worth it.

Likely we'll try something like this with local people in Orlando. The dangers to us are that we'll have one person in a class, which can be a real money loser for us, depending on who teaches it.

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