Tuesday, December 4, 2018

Sort By Price

Seth Godin had a pretty interesting bit about sort by price. He was saying that in the age of the internet, we now more than ever before have a way to sort by price (or any other single metric). However, if you are trying to sell a good or service. You want to avoid the sort by price game.

If you are a freelancer, you don't want to say. Hey, I'll do it for $5 cheaper than my competitors. It's a race to the bottom. There is always someone willing to do it for cheaper. Instead, you want to build trust and value. You want them to say "we need Jerry for this project, go get him". You can charge a fair price to people who value your service and thus you can afford to better serve them. For those that don't value what you bring to the table and only want you if you are the cheapest you can pass and say "sorry, its not for you".

On a similar note I've been browsing the IndieHackers forums and one very common advice is to charge more money, often saying you can probably double your price as it is, or at least experiment with doing it. It flips the script of sort by price: instead of creating the product and setting what you think it should be priced at, set the price high first and then raise the value of the product or service until it matches the price. If you do it this way then you know you are not selling yourself short.