In today’s hyper-competitive market, there's a recurring theme of businesses pushing the limits on how much they can charge. It’s a game of maximizing profits, squeezing out every last dollar from consumers or clients. But at what point did this practice become the norm? When did the focus shift from simply doing quality work and being compensated fairly to seeing just how much you can charge?
The Concept of "Value" Has Changed
Value is subjective. What one person considers worth every penny, another may find overpriced or even exploitative. The modern concept of value has become intertwined with perceived exclusivity, luxury, or scarcity, but why has the conversation shifted toward these factors rather than focusing on fairness, effort, and skill?
It seems as though the driving force in business today isn’t necessarily how well the job is done, or the quality of the product, but how much you can convince someone it’s worth. Have we lost sight of what value truly means?
The Art of Doing Work and Getting Paid for It
There used to be a time when businesses, freelancers, and tradespeople simply did their work, and in return, they were compensated fairly. The negotiation was more straightforward: how much will it cost to get this job done? Both parties would come to an agreement based on the scope of work, materials, and time needed to complete it.
However, somewhere along the way, we’ve fallen into a model that equates success with charging the highest possible price. The conversation shifted from “What is this work worth?” to “How much can I get away with charging?” The transactional nature of business became less about mutual benefit and more about pushing the boundaries of what the market will tolerate.
The Problem With Pricing for Profit Alone
Pricing strategies today often aim to extract as much value from the consumer as possible, without necessarily increasing the value of what’s offered. Sure, businesses need to cover their costs, pay employees, and invest in growth. Profit is essential. But has the pendulum swung too far? Especially with news headlines reading how corporations have made the largest profit ever to date the last few years - in the billions - with a B.
When pricing strategies focus solely on profit margins, businesses risk alienating their customers. They also contribute to a culture where the relationship between service provider and customer becomes adversarial rather than collaborative. Instead of creating an environment where everyone wins, this model fosters distrust, resentment, and even hostility.
Value Shouldn’t Be About Manipulation
One of the main reasons pricing has become so inflated is due to psychological pricing and manipulation. Techniques like scarcity marketing, artificial inflation, and the classic “premium” label, often lead people to pay more for something because they believe it’s worth more—when in reality, it’s often not.
For example, take the luxury market. While there’s no doubt that certain products are worth a premium due to craftsmanship or materials, how much of that cost is also driven by a company’s ability to make consumers feel like they need to pay more for the same level of service or product? The problem is, when this idea of value is based on manipulation, it leaves little room for genuine exchange and fairness.
The Ethics of Pricing
The ethical side of pricing is often swept under the rug in favor of focusing on maximizing profits. Many businesses ask themselves, “What’s the highest price the market can bear?” instead of “What’s a fair price for this product or service?”
In an ideal world, businesses wouldn’t be trying to milk every last penny out of their customers. They’d instead focus on the quality of their work and set prices that reflect that—not artificially inflate prices just because the market can “bear it”.
But this mindset is a hard one to adopt when the rest of the world seems intent on wringing out every last cent. It’s easy to fall into the trap of charging more simply because everyone else is doing it, but this doesn’t necessarily translate to better relationships with customers or long-term success.
Fair Compensation Without the Games
Fair pricing shouldn’t be revolutionary, but in today’s business environment, it feels that way. Imagine a world where businesses price their services and products not based on how much they can get away with but on what’s reasonable, ethical, and sustainable. Pricing based on experience, knowledge, and a willingness to collaborate. Wouldn't that change the game? Customers wouldn’t feel ripped off. Instead, they’d feel like they’re engaging in a fair transaction, which can lead to long-lasting loyalty and most importantly benefits for the business.
There’s no shame in being fairly compensated for your work, but when the main driver becomes extracting the most possible, it begs the question—who is that model really serving in the long run?
A Call for Transparency
There’s something to be said about transparency in pricing. People appreciate knowing exactly what they’re paying for. If your business can clearly explain why something costs what it does, without relying on tricks or manipulations, you’re likely to earn the trust of your customer. In turn, customers will be more willing to engage with your business, knowing they aren’t being taken advantage of. However, business owners also need a mind shift. Be prepared to pay a fair price and not look for the cheapest, fastest way to get something done with the hopes that it will bring miraculous results. That's called a fantasy and doesn’t exist.
If we revert back to the basics—doing the work and getting paid for it, businesses may find that they don’t need to resort to extreme pricing to stay afloat. Transparent pricing, coupled with great work, is often enough to build a loyal customer base and thus drive revenue.
Building Relationships Over Profits
At the heart of every transaction is a relationship. By focusing on how much we can charge, businesses risk destroying relationships with their clients and customers. And the sad part is that neither the business nor the customer seem to care. The business will just find more customers and the customer will just find an alternative yet similar product. Isn’t that the most depressing statement you’ve heard in a while. I think it is. But we can change that. The irony is that long-lasting relationships are more profitable in the long term than maximizing prices in the short term.
Pricing should not be the sole determinant of value. By offering fair prices and focusing on the actual work and service provided, businesses can build trust and loyalty, which leads to repeat customers and referrals—two things that are ultimately more valuable than squeezing the maximum possible profit out of a single sale.
Redefining Success in Business
The obsession with charging more and offering less has created an environment where success is measured by how much you can take from the customer. But what if success were redefined? What if success meant building sustainable businesses where clients felt good about paying for services and businesses felt good about delivering them?
There is an opportunity to shift the focus from how much we can charge to how well we can serve. It’s about time businesses took a step back and re-evaluated what "value" truly means—and more importantly, how to deliver it without falling into the trap of price gouging.
At the end of the day, people appreciate businesses that are fair, transparent, and honest. So, let’s bring back the days of doing the work, getting paid for it, and leaving both parties satisfied.
This rethinking of pricing and value challenges the current model and serves as a reminder that business doesn’t have to be a constant push for more—it can be about balance, fairness, and creating lasting, positive relationships. It's not “rocket science” as they say but when it comes to corporate profits it's quite an unpopular theory. Challenge the status quo. Be a difference maker. You may be pleasantly surprised at what you get back in return. Join me and many others as we offer quality services for fair prices.
Comments