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Your Price is too high! Or is it too low?


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I received an email today from a Consumer stating "Your price is too high, so hell with you sir!" in response a marketing email inviting him back for his next service.   My initial reaction was uh-oh, quickly followed by "Why am I not hearing more pricing complaints?".   This is quite interesting as we were in a discussion last week, talking about our prices being too low.   We are priced competitively in the market, but with a higher service level, likely, we should be able to earn more with a higher pricing.

I remember reading somewhere that if you don't have enough complaints of your price is too high, then you are priced too low.    There is a balance in pricing.   On one hand, we have price leaders nearby (, with prices so low that they would go broke quickly if they were honest) that will rob the price shoppers blind when they visit as well as other reputable shops with various pricing levels.   

I operate a combo lube and repair shop.     My repair labor rate is a premium to the area and we have talented technicians that rate this premium.    I'm at a small premium on the Lube, but believe it should be higher and .    

After having a chuckle on today's email, I figured it would make for a good conversation.   What is the right Price-is-too-high-complaint rate?  1% 5% 10%?     We might get a 0.5-0.3% abandon rate at the counter over pricing.  I'm sure that there is a silent minority that just doesn't come back, yet makes no noise.

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