In the old Peanuts comic strip, Lucy had a lemonade stand.
But instead of selling lemonade, she offered psychotherapy.
The sign over the stand read “The Psychiatrist is In — 5 Cents Please.”
“Why do you charge five cents?” Charlie Brown asked her one day.
“It’s what the market will bear,” Lucy replied.
But is “what the market will bear” the right way to price professional, technical, trade, and creative services?
Should we charge as much as we can get, wringing every last dollar out of our customers?
Or should we be more empathetic, balancing our greed and hunger for money with the customer’s financial situation when setting our fees?
Which pricing strategy do you use? And why?