Econ 101

Whenever two or more piano technicians get together, sooner or later the discussion will turn towards the topic of, “What are you charging for a tuning now?” Or someone new to the business might want to know, “How should I base my pricing structure if the experienced and established tuners are charging ‘X’ dollars for a tuning? When the topic comes up, most tuners glance around the room to make sure they won’t be accused of price fixing. I think we can have a fair discussion of pricing philosophy so long as we all don’t agree to charge one set price for a tuning.

The simple answer to the question of “How much should I charge” is, “Whatever you want to charge.” After all, we’re all in business for ourselves, each of us has a sense of what we’re worth and how much for which we’re willing to do a tuning.

The most sensible method, it would seem, is simple supply and demand, which we learned in econ 101. The basic philosophy here is: if you’re booked up two or more months in advance, you’re not charging enough. If you’re scrambling to fill next week’s schedule book, you’re charging too much. And there’s a happy medium in there somewhere. So how do we maximize the financial rewards for our craft?

We all decide how many hours we’ll work each week (our individual supply), and we all each have a certain number of piano owners who want us to service their instruments (the demand). Those are basically the two variables we can manipulate. We can change our weekly hours, thus altering supply, but we have several ways in which we can alter the demand. We can increase our advertising and marketing efforts. We can try to decrease competition, but the idea of “bumping off’ or “rubbing out” other local technicians is frowned on in most circles.

More accepted methods of increasing demand would including improving your customer service skills: dress appropriately, return phone calls promptly, show up on time, actually listening to your clients. These will all help to improve demand.

The most effective method for improving your demand, and in turn, your pricing structure, is to improve your skill level. If you strive to become the best at what you do, those who appreciate excellence will seek you out. As your reputation grows, so with the demand for your services. Eventually your supply will become tight, and you can adjust your prices to balance the supply vs. demand curve.

There is a slight modification to the supply vs. demand philosophy, which I like to call “tactical pricing.” If you hate driving long distances, you can offer discounts for close-in customers. If you like to work on a certain make or model of instrument, discount those. If, on the other hand, you really hate working on certain types of pianos, you can always adjust your prices upwards to discourage them. Hmmm, let’s see, what should we charge for that Birdcage…...

Do good work,

Dan