whyifailed.com Blog

Pricing the Value of Your Music

In my Don’t Be Cheap post, I talked about how charging higher fees is one way to stand out among the competition. David Maister has posted about another concept to think about, and just like raising fees, I considered doing this when I was a musician, I was just too chicken.

First, he gives an excellent lesson in value.”prices are set by scarcity – the relative supply and demand for the service provided. Water has more inherent benefit than diamonds, but diamonds cost more because of an artificially managed supply and demand imbalance…you get paid a lot when your client believes you deliver a level of value that cannot be (or is not being) delivered by other possible providers.”

He’s dead on! I know it’s a hard pill to swallow, but never forget you are operating in a field FULL of musically talented and special people. The difference between success and failure will be measured by your ability to deliver beyond everyone else in ways outside of music.

Which brings us to David’s pricing idea: “Every bill I send out, without exception, has these precise words: “If you are anything less than completely satisfied, then pay me only what you think the work was worth.””

Though this kind of guarantee is common in business, it’s rare in professional services (which helps David stand out) and unHEARD of in music. Which is why it’s a powerful idea to consider.

This entry was posted on Friday, October 20th, 2006 at 7:28 am and is filed under Marketing, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.