12. The Price Should be Right
The author suggests looking at the competition to decide where you should position yourself for price. I read in another book to be sure not to under-price yourself too much, especially for a service, since you have to factor in a lot more than you might think into the price. I want my Educabana concept to take off nationwide, so I am willing to have the price set fairly low in order to gain customers who will hopefully renew the service. When I started Innovative School Funding with a friend, we had no idea how many hours it would take us to make each website, so we created a pricing scheme that basically paid us a few pennies an hour for our time. We also realized that the model could never produce more than a few dollars an hour unless we spent a lot of time restructuring, which we never really bothered to do. For Passive Ninja, I have to maintain a price point that indicates I know what I am doing but also want to win customers who have a lot of choices. I am not charging by the hour because I can sometimes get awesome results very quickly, but I can also spend a full hour resizing one photo to fit properly on a website.