We Charge Reasonable prices. Does that meen high or low?

[Ihavenoname]

We Charge Reasonable prices.

I was surfing upholstery sites today and found many that noted that they charge "Reasonable Prices." At first I thought playing the cheapest game. I find this a bit odd, I know how much money most shops make, the time it takes to do good work, and the price of quality supplies ,and be or hire talented people. 

First off, what is reasonable price really mean?


I once tested prices for in home furniture repairs, these prices will date my test. I tested $35, $45 and $65. Funny but $35 got the most complaints and the fewest work, while $65 got no complaints and the most work.   Reasonable seemed to be the higher price.

What do you think "reasonable prices" means?

And

How do justify your prices as higher or lower?

Thank you.

[bobbin]

"Reasonable" for me means that I make at least as much working in my own shop as I do working for the man when the portion of payroll taxes that I now have to pay is figured in.  Right now that's perfectly fine and as more work comes through the door I will periodically reassess the situation.

I understand that a "legit." business will never be able to compete with someone working under the table, but that doesn't worry me too much.  I worry about myself and my work, not everyone else's.  In the "legit." market in my area my labor charge is lower than most, so I clearly see there is plenty of room for an uptick in labor charges when the time comes. 

Right now the focus is on building my business.  I'm seeing reliable repeat business, getting questions about whether or not I could do thusansuch to which I usually reply, "yeah, I can do that".  I've been adding equipment to make my work easier and reading like crazy, keeping an eye open for interesting tips and pointers.  And, I continue to struggle with the computer.  :)

[gene]

Almost all advertising means absolutely nothing from a logical point of view. People tend to buy on emotions. Not logic.

Sell the sizzle, not the steak!

From a logical point of view, what is 'reasonable' to one person may not be 'reasonable' to another.

Does using the word 'reasonable' mean that they used to have 'unreasonable prices' and for some reason they now have 'reasonable prices'? Or does it mean that their competitors have unreasonable prices? From a logical point of view, it means absolutely nothing. But, if it helps you to feel better about looking into doing business with them, then that is very reasonable, yes?

It's like the word 'free'. Free estimates. Free consultation. Nothing is free. It costs someone something. But it feels good knowing that we are getting something free.

I like the example of a rump roast. Someone asked the butcher why is it called a 'rump roast'? The butcher said it's called a rump roast because no one would buy it if it were called 'ass meat'.

gene

[kodydog]

Reasonable has become such a generic term I think most people don't think twice when they see it in an advertisement. Its so over used its meaningless. Similar to the term "highest quality". How many shops put this in their ad when you know their quality is questionable. When I see "reasonable" the first thing I think of is at what expense. How many corners do they cut to make their product reasonable. Stop and think about it, would you use a doctor who advertised reasonable prices?

Seldom does a customer ask if my prices are reasonable and when they do I know they are just shopping price. Not my best customer.

Are my prices reasonable, yes for the quality (there's that word again) and service they are. Am I the cheapest in town? No way.

How about "Highest Quality" and "Reasonable Prices" in the same advertisement. I think that would be an oxymoron.

[sofadoc]

Think back a few years to the days when you would consult your local Yellow Pages.
Let's say that your toilet sprung a leak in the middle of the night. Who ya gonna call?
Will you call the plumber with the Yellow page ad that says "Reasonable rates"? Or will you opt for the one that says "Highest quality"?
"Reasonable" is just a tactfull way of saying "cheap".
At 3 AM, most people with a plumbing emergency would call the "reasonable" guy.

I'd like to think that I'm not swayed by terms like that.
Car dealers are now touting "No haggle pricing". They IMPLY that you're going to automatically get the lowest price without any negotiation. Anybody believe that?

[byhammerandhand]

My goal is not necessarily to get the best price, I just don't want to pay a whole lot more than the next guy.   I'll have to admit, the last few cars I've bought were fairly standard "pricing."  One was Saturn.   Most of the rest were "internet" or "buying club" prices that were fixed amount over invoice (that I could confirm).   The only horse trading was on the trade in, for the few times I've had one.

Car dealers are now touting "No haggle pricing". They IMPLY that you're going to automatically get the lowest price without any negotiation. Anybody believe that?

Not so sure about this -- Wal*mart seems to make it work.  "Low Prices" draws people in.

Reasonable has become such a generic term I think most people don't think twice when they see it in an advertisement. Its so over used its meaningless.

[gene]

I think it's great that cars dealers no longer sell used cars. Those 'preowned' cars are so much better.

gene

[Rich]

I once tested prices for in home furniture repairs, these prices will date my test. I tested $35, $45 and $65. Funny but $35 got the most complaints and the fewest work, while $65 got no complaints and the most work.   Reasonable seemed to be the higher price.

Good to see that you actually proved a theory I've believed for many years!
Oh, and some will not find those prices dated.
Rich

[Ihavenoname]

Rich these are  mid1990 prices.

[Rich]

Exactly.
Rich

[Mike]

It's like the word 'free'.  Free estimates
feels good knowing that we are getting something free.

I k ow the hassle of a free estimate the time to fo out and price a job
But i would not ok a job not knowing what it will cost.
Not long ago i had some work donr first a dock but then i had to have a boat lift installed.
I needed to see what the cost was. Ecore i could
Commit  i mean are we talking 5k or 10k? I didnt know.