Whether you’re just starting a business or a seasoned entrepreneur, you’re not alone in questioning how to price your products and services.
How do you price for value beyond calculating costs of materials, development, labor, delivery, etc.?
Here’s help from an unlikely source: Picasso.
The following story, an often-cited urban legend, is instructive and worth repeating.
Legend has it that Pablo Picasso was sketching in the park when a bold woman approached him.
“It’s you — Picasso, the great artist! Oh, you must sketch my portrait! I insist.”So Picasso agreed to sketch her. After studying her for a moment, he used a single pencil stroke to create her portrait. He handed the women his work of art.
“It’s perfect!” she gushed. “You managed to capture my essence with one stroke, in one moment. Thank you! How much do I owe you?”
“Five thousand dollars,” the artist replied.
“But, what?” the woman sputtered. “How could you want so much money for this picture? It only took you a second to draw it!”
To which Picasso responded, “Madame, it took me my entire life.”
[Source: attributed to Ellen Rohr, best-selling author of “How Much Should I Charge” and other business books.]
[Image by Peter Lomas from Pixabay]