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PSU Insight

Setting Your Fees and Prices

Does Increasing the Price Increase or Decrease Desirability?

Sometimes significantly increasing a price on something can not only increase demand for the item, it can actually increase sales... and this principle applies to speeches as well as physical products.

For example, there was a speaker a few years ago who needed to cut back on his speaking schedule because of health issues. It seemed that raising his fees would be an easy way of clearing his calendar without having to say "no" to customers.

So he doubled his fees. To his surprise, that only made him more desirable in the eyes of his customers, and demand for his speeches actually increased.

So if you’re looking to spur an increase in sales, don’t fall into the trap of assuming that lowering your prices is the only option. The perceived reason why you’re lowering — or raising — your prices can be just as important as the actual price change itself.

Of course, you can only increase your desirability by increasing your price if you are considered a must-have resource in the first place. If no one wants you or your product, increasing your price might not work.

But what about cutting your price? You'll explore that in the next session....

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