Have you ever been working with a company on, say, a home improvement project or some business transaction, and they are hesitant to give you an exact price? Or they won’t tell you how much something is going to cost you until it's over? It’s frustrating to think about, but you should be more forgiving when this happens to you.
We know it sounds backward to hear that something that frustrates everyone serves a purpose, but there are several reasons why a business will operate this way when working with you, and we are going to take a look at some of them here.
One Size Doesn’t Fit All.
Pricing is not a universal practice. What you are paying for and how much of it you are buying plays a massive role in determining the price. What a company will charge its customers with any service or industry is as unique as their order.
For example, you wouldn’t expect a construction company to charge you the same amount for building an entire house if they’re only building a solarium on your back patio. This applies to other industries, too, since you wouldn’t expect to be charged the same amount for buying one item as buying 50 of them.
A Company’s Services Can Change.
What a company can offer you with their products and services won’t stay the same forever; eventually, you will need different services from them. If you are looking to update an older house, you won’t buy the same appliances or use the same company that originally built it. New methods and more in-depth services may require higher pricing if they need more labor to be accomplished.
Another example of this would be a website design. In 2021, you need a more direct and complete layout for your site than you would have in 2002 when logging onto company websites wasn’t as common.
Having the Same Price Won’t Create the Same Value.
Depending on size of the company and the number of services they’re putting out, having the same price as a competitor might be hurting them. A company can’t make the same profits if they have 100 employees and receive the same revenue brought in by a company with only 5.
It should come as no surprise that companies of different sizes would need to pull in varying amounts of revenue to remain successful and carry a profit. It isn’t realistic for customers of a larger company to expect the same price as a mom and pops company with a similar service or product.
Equal Pricing Can Restrain a Company’s Adaptability.
The economy is constantly changing, and a customer’s needs can change instantly, so imagine how difficult it would be to do business if prices of services and products never changed.
Having the same price for everything at all times means that a customer will likely go to another company offering a similar service or product at a price that better suits their needs.
Pricing for products and services is done with the thoughts and wishes of the company’s customers as it is their profit margin, hard as that may seem at times. A business will decide their prices, taking into account several considerations, and your needs will be one of them.