Price Reflects Value

This is a point I’m going to make frequently on this blog.  Price is a direct reflection of value.  People are proud to pay in full for a 100k sports car – it shows off their worth.  People buy designer clothes not due to functionality, but due to BRANDING.  Why do you think H&M gets a away with charging $200 for a blazer, that is really just Indonesian cotton that is beat up and dyed an obnoxious color?!  (I will admit H&M does have great sales…but you get the point.)

If you consistently try to engage your competition a price war , the only thing you offer is a LOWER PRICE.  Price becomes your BRAND.  Think – what are some companies known for low prices – Walmart?  McDonalds?  Sam’s Club?  Their entire business premise is around practical goods or services at the lowest price possible.  What about high prices – Whole Foods?  Banana Republic?  Fogo de Chao?  These companies charge high prices for their goods due to perceived value and higher quality.  Value – whether real or not – and offering a higher quality of service is their brand.

As a musician you can use this concept to your advantage.  You want to be the Rolex of your field, whether playing a wedding or corporate event, small concert series, or doing a recording session.  You want price to reflect your value – not how low you’re willing to go.  There will always be someone offering to do the job for less.   Don’t worry about your competition’s fees – if somebody wants to pay Joe Schmo $100 to play their wedding, well, that’s their choice if they want the music for the big day to sound like a total hack job.  Instead, offer a fair price that reflects your value – and offer a superior service.  Be punctual, friendly, easy to communicate with and make the performance about THE AUDIENCE . 

In the coming posts I will detail exactly how I negotiate contracts and what you can do to leverage simple business concepts to your advantage as a working musician.

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