Pricing philosophy

Derek Sivers

For years I made a living playing at universities.

One time a college far away in Ohio, about a 12-hour drive, asked what I would charge to do a two-hour show.

I said, “$1500”.

They said, “Oh, that’s a bit too much. What would you charge to do just a one-hour show?”

I said, “$2000”.

They said, “No, wait, you’ll be performing less, not more!”

I said, “Yeah! Exactly! What you’re paying me for is to get there! Once I’m there, playing music is the fun part! If you tell me I have to get back in the van after only an hour, and drive home, then I’m going to charge you more than if you let me play for a couple hours first.”

She liked that so much she came up with the $1500.

Point is: even your pricing can be creatively based on your own philosophy.
Question the norms.

For years I made a living playing at universities.

One time a college far away in Ohio, about a 12-hour drive, asked what I would charge to do a two-hour show.

I said, “$1500”.

They said, “Oh, that’s a bit too much. What would you charge to do just a one-hour show?”

I said, “$2000”.

They said, “No, wait, you’ll be performing less, not more!”

I said, “Yeah! Exactly! What you’re paying me for is to get there! Once I’m there, playing music is the fun part! If you tell me I have to get back in the van after only an hour, and drive home, then I’m going to charge you more than if you let me play for a couple hours first.”

She liked that so much she came up with the $1500.

Point is: even your pricing can be creatively based on your own philosophy.
Question the norms.