Price changes #

Recently I increased the pricing for the software services I offer and I got two kind of responses. One was about the percentage I have increased as it seemed too high for some to adjust and another response that they accepted on the spot.

This got me thinking about the reasoning and I have concluded that the response comes from the base reference. 

For the first case, their reference was my previous quote. The amount didn’t matter but since the increased percentage was high it was all it mattered to for the first reaction to kick in.

For the second case, their reference was the price of the market that they would get if they requested the same services from another person in the market. No thought was given to the percentage increase.

These two scenarios lead to another conclusion that we all go through the same experience, be it with products or services required in our personal life or business environment. When we have an unsatisfied need, we look around at the market scouting for the what the price for our needs and draw conclusions from that. Once we make a decision, we stop caring that much of the overall market and further changes in pricing or value will be judged on previous experiences and interactions. We become unaware.

Becoming unaware of environment changes because you didn’t pay attention while things went smooth might lead to a period of misaligned expectations and bad reactions because the tide takes you by surprise.