Disadvantage of calling a first price that is too high for your services.

[Min George]

For some service providers, they always want to call a first price that is very high and expect a long negotiation to come to a suitable price. This can backfire. In what ways do you think high first price can backfire?

 

[King Belieal]

You would scare your customers away and some might form a reputation that you are insensitive in how you do business.

 

[eLdavis]

It depends most times telling your customers a higher price often gives room for them to negotiate it to the actual price you want them to buy it, then starting with a lower price often leads them to price lower than the actual value. I think it would be better to be at the middle. Start with a reasonable price not too high and not too low, or you could simply ask them their budget first so you can know if to go high or low.

 

[Fidelia]

It depends on the business environment that you find yourself and the particular customer in question. That's why every business person needs to be sensitive when talking to a customer.

 

[Augusta]

Decreased Demand: From a business perspective, if the cost of a service is too high, demand may fall as consumers seek more affordable alternatives