It’s a critical decision to make, and many business people don’t. Are you going to serve the top end of the market or cater to the lower end? Do you offer high quality for a premium price or are you the low price leader?
You can make money in either place, but you cannot survive trying to do both. In my past life, I had a sales person who, when asked about price, replied: “Well our price is this, but I am willing to negotiate”. Loser!! Trying to live in both worlds.
At the same time, my top sales person would quote the price and, if the prospect pushed back too much, would simple say “Thank you for your time, but I sense this might not be the right product for you”. Sometimes that is all it took for the prospect to re-engage.
Serving the high end gives you the opportunity to build loyalty and long term relationships with the client. The low end can do the same thing with one caveat; if they will engage you because of price, they will leave you because of price.
Serve the market that makes sense for you. But serve only that one market.
Source: Craig’s Blog