People equate “cost” with “value”. If something has no cost, it has no value. There’s an old story about computer mice that is apt. An electronics store sells computer mice. Some are expensive, some are cheap. The store has found that one specific mouse is really really reliable. Some of the more expensive mice get constant warranty returns or RMA requests. But not this one mouse. This one mouse is built well, feels good, and works great. Every single desk in the store is using one of these mice. And this specific mouse also happens to be extremely cheap. As in, one of the cheapest that the store carries.
Sales floor employees struggle to sell it, even when they personally use it every day and know it’s a superior product, because customers see the low price and assume it is a low quality product. The customers are directly equating cost with value. And so the store manager does something sort of backwards. They increase the price of the mouse, to be around the same price as the others. Suddenly, this specific mouse is flying off of the shelves. People are now seeing the high price, and assuming that means the mouse is good.
Another place you experience this is when helping your family with tech support. Every single IT worker has experienced the “you updated Chrome on my computer six months ago, and now it’s broken. You broke my computer” complaint from a tech-illiterate relative. They see a friend or relative with a computer issue, they know how to solve said issue, they try to be helpful, and it blows back on them when the computer breaks in the distant future. This is largely because the IT person didn’t charge said friend or family member for their services.
In grandma’s eyes, your tech support service were free, so it has no value. You can’t be trusted as a real IT person, because your services are free. Charging a small “friends and family discount” type of thing actually cements in their mind that you do this for a living. You literally do this professionally. Even if you’re only charging them $5 for an hour of work, when you normally get paid $50 per hour. Again, you can call it the friends and family discount if you need to. But by charging them something, all of those “you broke my computer” complaints suddenly dry up. Because now you’re not just the grandson who plays with computers; you’re a professional in a specialized trade. You know what you’re doing, so it couldn’t have been your fault that the computer broke. It’s not really a friends and family discount; it’s a “stop blaming me when you download viruses” fee.
Bingo! I doubled the amount of business I was doing with my side-hustle PC repair by doubling my price. Also, my customers weren’t such a pain in the ass.
It’s because they haven’t thought about it.
They’re so used to the paradigm. I pay money. I get product. I get support.
So when they get the product but they don’t pay money, their brain short circuits and thinks they deserve some kind of support.
In a capitalistic world, communistic projects are confusing. Which is sad.
People equate “cost” with “value”. If something has no cost, it has no value. There’s an old story about computer mice that is apt. An electronics store sells computer mice. Some are expensive, some are cheap. The store has found that one specific mouse is really really reliable. Some of the more expensive mice get constant warranty returns or RMA requests. But not this one mouse. This one mouse is built well, feels good, and works great. Every single desk in the store is using one of these mice. And this specific mouse also happens to be extremely cheap. As in, one of the cheapest that the store carries.
Sales floor employees struggle to sell it, even when they personally use it every day and know it’s a superior product, because customers see the low price and assume it is a low quality product. The customers are directly equating cost with value. And so the store manager does something sort of backwards. They increase the price of the mouse, to be around the same price as the others. Suddenly, this specific mouse is flying off of the shelves. People are now seeing the high price, and assuming that means the mouse is good.
Another place you experience this is when helping your family with tech support. Every single IT worker has experienced the “you updated Chrome on my computer six months ago, and now it’s broken. You broke my computer” complaint from a tech-illiterate relative. They see a friend or relative with a computer issue, they know how to solve said issue, they try to be helpful, and it blows back on them when the computer breaks in the distant future. This is largely because the IT person didn’t charge said friend or family member for their services.
In grandma’s eyes, your tech support service were free, so it has no value. You can’t be trusted as a real IT person, because your services are free. Charging a small “friends and family discount” type of thing actually cements in their mind that you do this for a living. You literally do this professionally. Even if you’re only charging them $5 for an hour of work, when you normally get paid $50 per hour. Again, you can call it the friends and family discount if you need to. But by charging them something, all of those “you broke my computer” complaints suddenly dry up. Because now you’re not just the grandson who plays with computers; you’re a professional in a specialized trade. You know what you’re doing, so it couldn’t have been your fault that the computer broke. It’s not really a friends and family discount; it’s a “stop blaming me when you download viruses” fee.
Bingo! I doubled the amount of business I was doing with my side-hustle PC repair by doubling my price. Also, my customers weren’t such a pain in the ass.