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Home-based pricing pressure

How do I respond to customers who think my prices for a service should be lower because I'm home-based? 
Just because you don't have commercial-space overhead (like rent, business-class utilities or commercial insurance, for example), doesn't mean your product or service should be less than that of the competition. Remind these folks that they're "paying for expertise," not location. 
Brain Trust contributor: Co-Author of The 30 Second Commute
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AskJim ID: 997