Adding Fees is Costing You Business

I make this face two times:

When somebody pays $50K for something and complains about an $11 fee.

When a business charges an $11 fee on a $50K purchase

How do you feel about paying extra fees?

(reply and let me know your take on this)

@FalconwingsNJ has about 3,000 Twitter followers.

Most of his tweets receive a few thousand impressions in their lifespan.

But then he was charged an $11.85 processing fee for a $50,000 car…

His complaint tweet has 8 MILLION impressions since yesterday!!

Why? Because like you and I, most people can’t stand FEES.

(read a bonus lesson at the end)

As a customer, paying fees makes me feel like I’m being taken advantage of or that I’m spending more than I should.

Have you had this experience too?

As a business owner, you may be tempted to add fees to your prices to cover your costs or boost your profits.

You want the sticker price to appear competitive and think you’ll just add in fees on checkout…

You’re doing it WRONG!

Have you ever considered that this practice may actually be hurting your business?

When a business charges extra fees, it can create a negative impression and erode customer loyalty.

It makes me NUTS!

There have been many times I’ve chosen to walk away from a purchase or simply never return to a business that charges extra fees.

Sure, there may be valid reasons for charging fees, such as covering costs for credit card processing or shipping, but customers often perceive them as unfair.

In fact, a survey by YouGov found that 56% of consumers believe that extra fees are “annoying and frustrating” and 21% said they would rather pay a higher base price to avoid them.

Personally, I never quite trust surveys but I use them to support my thesis. In this case, I think these results are too low.

So, what should businesses do?

→ DO NOT add fees!

Incorporate the cost of fees into your base price and advertise it as such.


This way, customers can clearly see what they are paying for upfront and won’t feel like they’re being nickel and dimed with extra charges.

In addition to improving customer satisfaction, incorporating fees into your base price can also help simplify your pricing structure and make it easier to communicate with customers.

BONUS LESSON – Negative Feedback

FalconwingsNJ really hit home with his complaining tweet.

Tens of thousands of Likes

Hundreds of Retweets and Comments

and remember EIGHT MILLION impressions

It attracted so much attention that Elon Musk himself replied and promised to erase the fee.


Take a look at the response engagement:

30,000 impressions (down from 8,000,000)

4 retweets (down from 541)

114 likes (down from 22,500)

Always remember, the complaint will get exponentially more attention than the response.

You never want to be in such an underweight position in your business and it’s highly likely you won’t be able to absorb it the way Elon can.

Save yourself the headache of negative feedback and write your pricing all in one.

Brian “I’m not coming back here again” Orr

P.S. If you’d like some help attacking a business problem, like pricing strategy, use the link below to schedule a free discovery call.