Middle means mediocrity

Many service companies have challenges knowing how to price their offerings.  They tend to set their rates by looking at the both the high and low figures for their marketplace and then making a decision influenced by how they see themselves on the quality spectrum.  If they are a new business they might just rationalise that by seeking the middle ground they will be on safe territory.

There is a trap here that many fall into.  Following this recipe will tell their customers exactly how good the company really thinks it is.

Think about it. If that's how you are setting your price what you are saying to prospects is probably that you are not that great.  The high price position is actually pretty good because it says to clients - we are really good! And now all you have to do is live up to that.

The low price position is probably pretty good too providing you really can make a profit at that level.

The problem with a middle ground price is that you are saying "We aren't the best - and neither is our price - but we aren't the worst either."  Not the most compelling business position to be in.

If you price at the top end you are occupying a niche position and compete with relatively few if any competitors.  If you price to be cheapest - well there can only be one cheapest supplier and who really wants to be down there.  If you price in the middle the sad fact is you compete with just about everyone.