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

 

[kit_hung]

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.

In business, prices are like a fish trap. If you set them too high, you give customers the opportunity to reduce them to the price you want, but if you set them too low, they lower them even further until you find yourself selling at a loss. It's best to start with an average price that's neither too high nor too low. Or even better, ask them about their budget first so you know where you're playing. Business is about intelligence and timing, not just guessing. Every customer has their own style of negotiating prices, so you have to know what cards you're playing.

 

[eLdavis]

In business, prices are like a fish trap. If you set them too high, you give customers the opportunity to reduce them to the price you want, but if you set them too low, they lower them even further until you find yourself selling at a loss. It's best to start with an average price that's neither too high nor too low. Or even better, ask them about their budget first so you know where you're playing. Business is about intelligence and timing, not just guessing. Every customer has their own style of negotiating prices, so you have to know what cards you're playing.

True, at the same time this can also backfire. There are cases where customers run away once they hear the price.

 

[Fidelia]

Talking about high price, there are places like supermarkets and boutiques, no negotiation is made there. The environment is a major factor that contributes to the way people buy. I believe you must set your business place to standard and sell at a higher price to make good profit so you won't be running at a loss.

 

[Augusta]

The Customer might just leave without pricing. From.experience with situation like that I just walk away immediately