Whether or not to display pricing information publicly for everyone to see is one of the most debatable decisions for practically any business owner. Most business owners have avoided displaying this information. But is it a mistake?
Some business owners believe that when you display your price before being able to show the value you’re offering, your potential customers will see it as too high or overpriced and either never come back or go to another vendor with a lower price.
Let’s not forget that these days, it’s so easy to get all the information we need online, and gradually, we have gotten used to that and when the information we are looking for is not there or is too hard to find, it could possibly throw us off and we will simply move on to elsewhere. Also, hiding information about your brand or business can be suspicious, and just like that, doubts come creeping in.
The question now is why are businesses so reluctant to make their pricing public? Let’s go over some reasons why some brands do or don’t make their pricing public and hopefully, this will help you make an informed decision as to whether it’s a good idea or not to publicly display your price.
Let’s begin with some reasons why brands don’t publish their prices.
- When each price given to a customer is tailored to his/her needs. So creating a standard price list and having to change it to suit the needs of a particular customer can actually cause more harm than good.
- Some business owners don’t display information about their prices because of competitors. Making your prices public makes it easier for competitors to gain access to it and when that happens, they begin to charge lower to get more customers.
- Also, some business owners are of the opinion that putting your prices public will scare potential customers away and they aren’t willing or ready to do that so they just don’t display it.
- And lastly, some business owners simply don’t know what to charge, so their prices are always fluctuating and this is definitely a killer. Fluctuating prices for whatever reason is definitely going to raise doubts in the minds of your customers. You could be raising your price because you believe this customer will be able to pay more than what it originally is but what that does is make the person who paid less wonder if they got a substandard product or service.
And reasons why brands do publish their prices
- For transparency. Transparency and trust are super important to consumers and for your business as well. When customers visit your page/profile, they expect to see clear pricing information and when they don’t, they assume you’re either too pricey or something is wrong and move on to someone else.
Why this happens is because customers want to know if they can afford to pay for their purchase and if they have even the slightest suspicion that you are too expensive they won’t bother taking it any further.
- Helps you get ahead of the competition. One thing business owners need to understand is that your price is just one factor in the purchase decision of a customer. Other factors such as quality, service, reputation, and relationship are just as important (if not more important) and you can use those to your advantage and get ahead of your competitors. Alongside creating a price list, you can also post the values your customers stand to gain and even reviews from previous customers. These are just a few things you can make work to your advantage.
- Displaying your pricelist makes selling easier. Putting your price list in the open for customers sends a subtle message to them and helps them understand that there is a limit to which they can bargain. Therefore, making selling easier and faster.
- Also, displaying your price helps you attract the right target audience. It is recommended that before you venture into any business, it is important to know who your target market is because you can’t possibly be targeting everyone. Hence why putting your price list is important, with this, you target the right customers; customers who are willing and ready to pay and close the purchase as against customers who aren’t sure of what they want.
- And lastly, displaying your price helps you gain consumer insight. You may not close a deal but this will definitely help you know how your potential customers perceive your prices and this can influence a change.
In conclusion, the online space is a large and ever-changing marketplace that allows us to search, compare and find the best deals for whatever we are looking for. Putting a price on your goods or service says more about their worth and value.
If you can save yourself and your customer the extra time and trouble of asking for your prices, please do. And that also brings you one step closer to earning their trust.