LOTS of business owners have told me they don’t want to publish prices on their website because:
- It attracts the wrong customers
- They don’t want competitors to copy and discount
- They offer custom products, so all pricing is different and they don’t want to create the wrong impression
- They don’t talk pricing, they just want to engage with customers on the phone or face to face
There is merit in all the points above, but we need to recognise that times have changed.
When I was young pricing was not talked about, then there was the generation bragging about their special secret deals. Now pricing is an open book.
Take onthehouse.com.au for example, houses are the biggest asset we own and those prices are online for everyone to see.
Are they 100% accurate? No.. But are they a useful guide? Absolutely.
Does publishing pricing devalue the property or create demand? Good question.
Comparethemarket, booking.com, price comparison engines.. there is a whole middleman economy taking clips of revenue because we as business owners and marketers are not investing enough in our websites and content to educate our potential clients about the options available, their value and the average price points.
Real example from Tenfoldcoaching.com.au – Ashley Thomson
“Publishing pricing can be used to your advantage: one of our coaching clients manufacturers high-grade outdoor blinds that were comparable to a product made by a premium European brand that was very popular in Australia.
“The client did not mention prices and relied on requests for quotes and used their great service to close sales. Research showed that the European competitor’s pricing was significantly higher so we advised our client to increase their pricing to be closer to the leading brand (to position their product in the same category and avoid being perceived as cheap and lower quality) and then publish their prices and highlight the savings to customers, along with the benefits of buying a locally made product (reliable, faster delivery, specifically made for Australian conditions).
“Sales went up as did profit margins.”
Using Google to segment your market
You can use Google as an instant guide as to how consumers think about your industry and how important price is.
Here are some examples of how people search for price information across a variety of industries:
As you can see the bigger the decision, the more price becomes important.
On the other hand service industries are all about convenience, so there is a different pattern of location search and price is not as important.
Things to consider/takeaways
- The person typing ‘cost’ is not the same as the person typing ‘cheap’
- You don’t need to discount when your talk openly about pricing. Your business can win customers by presenting price ranges and investing in content which explains the difference and the value in the solutions at higher prices
- You can personalise your web experience outlining the typical solutions customers purchase in certain circumstances or based on their preferences
The bottom line
If you are selling high value items and you are not investing in educating your customers about price and value, they will be going somewhere else now and in the future.
Thanks for reading