At some point, "conversation" always turns to price. That’s where I find a lot of online business people making their mistakes. The common mindset among Internet business startups is that you have to keep your prices rock-bottom low in order to attract customers.

Nothing could be further from truth! Raising your rates (in some cases) can actually increase your business. How so? Here are several reasons....

1. People Equate Price With Quality

I’m sure you’ve heard expression, "You get what you pay for." That statement comes from a long line of lessons learned by people across globe who have bought something at a discounted price and regretted it later.

Maybe product was used. Maybe it was made with inferior materials. Perhaps a "discount" service they tried fell through and left them in a fix. It could be any number of reasons, but those who have tried "bargain" or "discount" route and have been burned are quick to look for higher priced products and services. It makes them feel safe.

I know of several online business owners who raised their rates on services they provide. What happened? For about one week it seemed they had made wrong decision. Business all but stopped! However, after that "adjustment" period, floods of leads came rolling in. They never regretted it.

2. Customers View Higher Prices As A Status Symbol

At end of every Winter as warm weather and sunshine approach I find myself keenly aware of where I'd like to be spending my time. Outside as much as possible! I think changing of seasons is a great time to re-evaluate our life and what areas we would like to change. After all, if you don't know what you want, it's impossible to get it.