The point is, many customers simply will not buy a product or service at a discount price regardless of how good quality is. They have "ability" to afford higher prices and are proud of that fact.

3. Many Believe Expensive Products Are Image Boosters

I actually heard this conversation in a department store once.

Woman One: "Look at this blouse! Isn’t it wonderful?"

Woman Two: "It’s OK, I guess."

Woman One: "But it’s an Adrian Bloom blouse! I’m going to buy it and make all my friends jealous."

Woman Two: "Who is Adrian Bloom?"

Woman One: "I have no idea, but this blouse costs twice as much as that Liz Claiborne one so it must be next big thing!"

Can you believe it? The woman had no idea who designer was, but based on price, she decided it would enhance her image so she bought it.

The same is true of Internet shoppers looking for products or services. Those who believe being associated in some way with higher-priced businesses are more willing to spend money because they feel it will enhance their images.

The psychology of pricing is a complicated subject, and I’ll be first to admit that raising rates will not work for everybody. Before you raise your rates, consider following:

1. Can you offer something better or different than your competition?

2. Will rest of your business support "branding" of a higher price? (i.e., Do you have a very professional-looking site, excellent service, and other elements that those who pay higher prices expect?)

3. Will new pricing structure allow you to make as much, or more, money by selling fewer items at a higher price rather than many items at a lower price?

It just might be that reason your business is struggling is that you’re charging too little. Give some serious thought to raising your rates. It just might be best thing you ever did!

Diane C. Hughes * ProBizTips.com

Thinking about your professional life, what are your priorities? You might want that promotion, corner office or dream job. It's important to have clear goals but you also need a plan to get yourself there. When you look at your choices each day, ask yourself if they are helping you make progress toward your envisioned future or not. Once you have identified actions that are hindering you, it is easy to let them go. You can begin to focus on making more choices that are in-line with your professional vision and growth plan.

Take this opportunity to start new growth. Lay down some constructive plans for your quality of life and professional development. Who knows what your life could look like this time next year!

Deirdre McEachern's passion is helping her clients achieve their dreams. She believes strongly that you can find a career you enjoy, express your natural talents and have a life!

Contact Deirdre at deirdre@vip-coaching.com

for a free career-coaching consultation or