Putting a price on your book, article, or writing service is always difficult. If you price yourself too high, you risk losing sales. If you price yourself too low, you not only risk losing sales to people who assume your product or service is “cheap”, but you also may become the victim of a Cocky Client.
Perceived Value Based on Price Tag Alone
The price alone on a product or service immediately gives a psychologically-induced “perceived value” to the item. If an item is priced at 99 cents, you automatically assume that it’s cheap. Yet the exact same item may cost $9.99 at the Department Store. If you didn’t know about the 99-cent item, you would, subconsciously, feel the higher priced item was of a higher value. If you buy a brand new sweater at the department store for $20, you’re going to assume that exact same sweater is of a higher value than an identical one found at the resale, with the price tag still on, for only $2.50. Which one is worth more? The products are the same, but, in your mind, their values are different based on the price tag alone.
The same holds true for your book and writing services. If you price your book at $5, buyers will perceive that the value of the book is only $5. Pricing a book this low may actually hurt sales rather than help them. The exact same book may sell better priced at $15 because the buyer perceives the value of the book to be higher. This perception is created in the buyer’s mind before they even open the book. In fact, believing a product is of a higher quality based on the price may actually influence the buyer’s feelings about the book during and after they’ve read it. These feelings of value may even be reflected in any reviews they write. Strange, but true! It’s human nature.
We have many books at Booklocker.com that had slow or no sales until the authors raised their prices. Only then did the books become successful. We’ve never seen a recognizable impact on sales when an author has chosen to lower the price of their book.
The Cocky Client Clause
With services, the same formula applies. Let me give you an example. At Booklocker.com, we have, in the past, offered to waive our setup fees for two family friends. These relationships quickly deteriorated in both cases. Since they were getting a “free” service, they seemed to expect almost God-like treatment when dealing with our employees. Not only were they demanding and irritating like no author we’d ever experienced, but they were verbally abusive to our employees as well. One of our employees said of the most recent one, “He treated me like a common servant.”
If you’ve ever had a business relationship with someone who made it clear they were your superior, you’re no doubt familiar with the Cocky Client Clause. It wasn’t in your contract but was a large part of your business deal. Since the Cocky Client is paying the money, they call the shots. Since you’re the lowly servant providing the product or service, you must conform to the Cocky Client Clause by smiling and abiding by their terms, no matter how much of a jerk they become.
Cockiness is based on narcissism, which is a psychological condition characterized by self-preoccupation and lack of empathy (dictionary.com). Narcissistic people enjoy flattering themselves while making those around them feel inferior. When you sell yourself out for less than your worth, the narcissist will assume you are their inferior and will treat you like…crap.
Even employees at brick and mortar stores see this trend. An employee working at a fast food establishment is subject to far more verbal abuse than one at a nice restaurant. Different clientele? Perhaps. But, wouldn’t you rather attract the nice client that treats people with respect than the narcissistic client that treats others as inferior subjects?
One of our previous cover designers grew so tired of the treatment she received by offering inexpensive covers that she quadrupled her rates. Not only do her clients treat her with more respect now (her prices now reflect a true professional), but she also has more business!
As for our two recent Cocky Clients, we terminated their contracts (before the books ever went to print) and we are no longer friends. And we have a new company policy, which I strongly recommend you adopt for your products and services as well. Never offer anything free to anybody. Because, when you do, they may assume you are the inferior servant offering something of zero value. They become the Cocky Client and, in their minds, believe you need them to put food on your table. They will very likely treat you accordingly.
So, when pricing your book and writing services, be sure assign prices that truly reflect the quality of your work as well as your professional status. Remember, freelance writers and authors ARE professionals! You deserve fair pay for your product and service, and you deserve RESPECT from your customers. The customer is NOT always right.