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If you had to charge ten times as much

This is such an interesting question because it asks for ten times, not twice as much. 

Asking for twice as much can trap you into thinking: 

  • I will work twice as hard! 
  • I will double the quantity of whatever I am offering! 
  • I will simply increase my prices, lose a few customers but keep the premium ones. 

None of those strategies really work when you need to charge ten times as much. Something else needs to change.

I have not found the “right answer” to this one, just yet.

But somethings are obvious:

I cannot work ten times more hours or put in ten times the effort. With 24 hours on any given day, that is simple, not possible. 

Ten times the quantity may also not be possible, not to mention that the customer may not be interested in that much more quantity. 

So what can it be? 

On the same airplane, different people pay different prices. And yes, you can find a ten times difference in tickets. The same plane does not fly farther, does not fly faster, and does not land in a luxury airport for those who pay a premium. So what exactly do they pay for? 

In the software industry, given the same project specs, you can hire developers on a wide range of prices. The specs don’t change, so the end result should be the same, so why the different prices? Why is a developer more expensive than the other. And why would a customer choose to pay for someone who charges ten times the lowest price on the offer? 

A possible, but lazy answer is status. If you care that a “Google Developer” worked on your project, you will pay to be able to say that, even though a “less famous” developer may have done the job. Beyond status, this can be a marketing signal as well. When you sell this service, it may be worth it to your customers to know that a “famous” developer worked on it if that signals quality.

Trust may be a better answer. I don’t think you can trust someone “ten times more” than another person. Still, you do have a definite feeling that you can trust person A but not trust person B. 

And if trust is essential to my business, then person A can successfully charge ten times more than person B. What is the value-added to justify this increase? In the moment, probably none. But in an environment of clickbait and shady practices, person A has spent valuable time, resources, and emotional labor to prove trustworthy. Their reputation is their asset that you pay for. 

Going higher on the “better” scale, you may have to change the people you serve. If you are a high precision car mechanic, that will not matter if all your customers want from you is to fix their headlights. You may be fast at it, you may be precise, but it will not matter. You will not be able to ask ten times more for your services in that crowd. You need to find a different crowd, likely a smaller crowd, looking for that particular skill. To them, it will make sense to pay you ten times more, because the value they get out of your work is twenty times more. For them, you will still be a bargain.

On the same level with “change the people you are serving” can be “change your story.” In fact, the two go hand in hand and influence each other. If you sell a commodity, you have no choice but to join the race to the bottom. The alternative is to trade in emotions. To transform fear into belonging. For that, you need a story. You need to stand for something. To serve people at the edge, that everyone else has overlooked. 

For “regular” people, water is free. For someone stranded in the desert, water is priceless. A way to charge ten times more is to find people who are thirsty and then create the product or service that will satisfy their needs. 

Charging ten times as much is scary because it usually means you need to change and sometimes in dramatic ways. Letting go of the old clients is not easy. Letting go of the old product or service feels frightening. What if you are wrong? And we arrive at risk. Those who play it safe always find themselves in a crowded place. Setting out to sell water in the desert does not mean you will also find someone there. 

How about you? What would you change if you had to charge ten times more? 

What does it mean to add value to your customers?

“How can I add value?”

This is the question I write at the bottom of my daily planner almost every day. Why? Because I want to train my brain to think in those terms. Why? Because I hear this is the key to success.

I never managed to answer this question adequately. And I had the insight that I need to answer a different question first! And that is:

“What does it mean to add value to your customers?”

Looking at this question, I realized that my efforts have been selfish. I was concerned with “my success.” The reason I wanted to add value is that I become successful by doing so. 

This question forces me to face the fact that I don’t know what “value” means for my customers. Yes, I can make guesses, but I don’t truly know. 

So many times, I have been tempted and followed through with this idea: what I do is valuable to me, so it must be valuable customers too. And if they didn’t see the value, that was their loss! This approach has resulted in projects that are too complex or in features that I thought were cool, but the customers did not care about them. 

And this has happened because I never paused to ask: “what is valuable to my customer?”.

Value is very subjective, I have discovered. I don’t handle loss very well, so I have a reliable backup policy. But others are much more willing to start over again, so backup is not essential. 

I value aesthetics and elegant design. But most of my customers value ease of use and the ability to manage the website themselves. 

I also have discovered that I am biased. And my bias is not the same as my customer’s bias. 

The first step in discovering what it means to add value to my customer is to be humble enough to admit that I don’t know and that I need to have a discussion. In this discussion, I need to ask the customer what is valuable to them, and if required, to help them discover their values in that process. I also need to set my bias aside and truly understand where the other person is coming from. 

The second step is for me to determine if we are a good fit. Based on what I now know about my customer’s values, can I truly serve them in their best interest? And sometimes the answer is no. And in this case, I have to send them away. 

But there is a way to refuse to work with someone that is not selfish. You can still add value by making a recommendation and send them to a specific someone else (your competition), instead of simply turning them down. This way, interacting with you has still got them one step closer to solving their problem, and you have been generous and trustworthy enough to recommend another person for them to work with. You may have lost a client, but you have earned trust, and in today’s world, trust is precious. 

So how can I add value to my customers? It first starts with showing empathy and meeting them where they are at. And in some cases, it means saying “no” and pointing them in a different direction.

Credits: my viewpoint on marketing and adding value is shaped in great part by people like Chris Do, Seth Godin, and Blair Enns.