In most businesses, and especially for service professionals, pricing should be a reflection of the value created for clients. But too often, fear takes over and the final price becomes a reflection of the confidence in the value created for the client.
When you cave on price, you may be communicating that you don’t believe in what you are providing and a lack of confidence won’t help you win. You may be communicating desperation – we have to win this one – and no client wants to be the one to save you.
When you cave on price you may think you are reacting to the market, when you may in fact be creating the market.