I'm Underpriced and Scared to Fix It, Price Elasticity
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I'm Underpriced and Scared to Fix It, Price Elasticity
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A bookkeeper has held her rates flat for five years because she's sure raising them means everybody walks. Brian and Dave separate the fear from the number and get into price elasticity of demand — the measure, formalized by Alfred Marshall in "Principles of Economics," of how much volume actually moves when price moves — and why specialized, high-trust, high-switching-cost work is a strong candidate for inelastic demand, though a candidate isn't proof. They walk the napkin math, why you test on new proposals before touching your existing book, how to segment by client, and where the whole idea flips. Monday Move: on the very next proposal you send, quote it fifteen percent higher — no apology, no preemptive discount — and watch what happens. One data point, not proof.
Written version and this week's Monday Move: The Operator's Library at mmsvegas.com.