Okay so you charge 40,000 for the cadillac because that is what it is worth....
I am curious for the extra 25.00 dollars then? Where does that come into play? Why 25.00? Why not $10.00?
What is the significance with $25.00?
I am trying to understand the exact pricing with what you perform.
Paddy gets the higher rates because that is what he is worth. He knows what he is worth and his fee reflects that.
Your car example makes little sense because it leaves the buyer with a feeling of regret. If I wanted a car I would like the best. That is a normal human want. Now if I buy your cheaper car then I am left with the feeling that if only I spent that little more I could have the best.
Your fee reflects what you think you are worth. Lets say you charge $20 an hour for balloon work. People will hire you but they will expect very little from you. Well that is great right, people already think you are an okay balloon worker. First impressions are everything and it starts with your fee.
Now you are at the event and you do a good job. You do good work and get your check. The people that hired you look at what you did and think well that is pretty good, if he was this good I wonder what I would have gotten if I hired the more expensive guy.
You have created want... But for another performer. They will be getting your clients and will be making more than you.
It is a failing system and it starts with your fee. Paddy knows he is worth something. He has worked for years and is very good at what he does. He is worth his fee. You on the other hand are undercutting yourself. People see that and will hire someone else.
I could simply reply with "No, no, no, no, no" but instead I'll explain your misunderstanding of this debate.
The average laymen who books someone for an event to make balloons does not know the difference between balloonists. Lets separate balloon twisters into two categories. Ones who make ONE balloon sculptures (i.e. dog, sword, etc...) and those who make MULTIPLE balloon sculptures.
Now, SOME laymen will notice the difference between these two categories. No laymen will know a pinch twist from an ear twist from a loop twist from anything.
So therefore, because I make multiple balloon sculptures and Paddy makes multiple balloon sculptures people will see our work as being very similar.
This explains my car example.
My Cadillac is the same as Paddy's Cadillac IN THE EYES OF THE BUYER.
But mine is cheaper. SOLD.
Also, your statement about how if i charged 20 bucks to do a show, people paid and were happy. They are NOT going to think oh well lets hire the more expensive person next time.
Your thoughts on that show your inexperience with the real world performing.
Why ruin a good thing?
People are happy with what they got why change it? Why risk it?
Lesson #1: This is how referrals happen.
And out of this entire debate I have yet to say that Paddy shouldn't charge the 25 bucks extra for an event. All that I have asked is "Why?" I have yet to receive a legitimate answer as to why 25.00 over any other entertainer.
Before everyone rants and raves about underbidding, just keep in mind there is such thing as overbidding.