Pricing: How to Set It and When to Raise It

No, and it says so in lesson one rather than in a closing footnote. You will find not one figure in it — not my price, not a “usual” profit rate, and not what anyone else charges. A published figure becomes a reference that gets copied without knowing what scope, cost and market sit inside it, which is exactly the mistake the course is written to stop. What it gives you instead is a floor computed from your own numbers, a way to read the value your customer sees, and a structure to present it in. Every example is by method, and you put your own numbers into every exercise.

It is a fair question, and lesson four answers it directly rather than avoiding it. Publishing suits a defined product or a service of fixed scope: it saves your time and the time of whoever your price does not suit, and it builds trust. It does not suit work whose scope differs greatly case by case, because a published figure is read without its scope and becomes the comparison before what is in it is understood. My work is the second kind, so I do not publish — and the lesson says plainly that this is my position and not a rule for you, and that if what I sold were defined and fixed I would publish it. There is also a middle path many find useful: a starting point, with what makes it rise.

That course computes the margin, the break-even and the cash forecast; this one decides the price those numbers respond to. The boundary is drawn in lesson one and kept throughout: when a calculation belongs to that course, this one names it and moves on rather than repeating it. The clearest example is the discount — the exact arithmetic of what it takes out of your margin is over there, and here you get the decision rules built on top of it: the four cases where a discount is legitimate, what to give instead, and why a discount repeated three times has become your price.

That fear is the subject of lesson six, and its first line is that what frightens most is not the customer’s reaction but that you have never tried it. So the course gives you the cheapest possible experiment: raise on new customers only, announce nothing, and run it for two months. You learn whether the market accepts it without risking a single existing relationship. Before touching existing customers you compute how much in sales you can lose and stay at the same profit — a calculation whose answer surprises most people, because the whole increase enters the margin. And some will leave; usually the ones who were buying on price alone.

Not in the sense of tricks. Lesson seven is about understanding rather than manoeuvring: “expensive” has four different meanings, and treating all four with a price cut loses in three of them. So the lesson gives you one question — “expensive compared with what?” — then silence, and a different reply for each meaning. It also draws a line the course does not cross: a phantom option built to be refused, and a price that differs because you judged the customer can afford more with no difference in what they receive, are both things I do not advise — and the first to discover either is the customer.

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