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Monday, February 15, 2010

Charging a Premium

There's an Irish pub I used to frequent when I was an undergrad.  One day I glanced at the drink list above the bar and was surprised to find that an Irish Car Bomb cost $10.  That's expensive!  Curious, I asked the bartender why one drink cost so much more than everything else they offered (most drinks were $5-$6).  I expected him to tell they were bigger than usual, they used a special blend of whiskey, something that justified the high price.  He told me the real reason: "We don't like to make them."  Wow.  I didn't see that one coming.

Years later it makes perfect sense to me.  Sometimes a client asks for a service you'd rather not provide.  Rather than turning business away (especially if you want repeat business) charge a premium.  If they decide you're price is too high, great: you didn't want to do it anyway.  And if they accept your price you make extra money.  Good news either way!
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