pros and cons of posting prices online
Robert G. Hoover
Hi All,
This is my first post here. Forgive me if this is not the appropriate place...
I've always heard it said that you should never post your prices on your website
because if you give away every piece of information you have about your product,
then potential customers are not inclined to contact your for more information -
if you strategically withhold specific information, then potential customers
will have to contact you and then you will have their contact information to
follow up and "work" the order.
Do you agree or disagree with this philosophy with regards to capital equipment
($50K and up)?
What are the pros and cons of posting your pricing information online?
Pro: Your potential customers can know your prices immediately.
Con: Your competitors will know your prices immediately.
Any other thoughts?
Many thanks!
Rob
creativechaos
Hello Rob,
Stating prices (at least on a ballpark basis) is useful if you have a low=
er
priced solution that your competition will not be able to equal anytime
soon. You'll also need a good story to explain how it is that you are abl=
e
to run so lean (as compared to your competition).
You will still need to spend marketing and sales dollars to convince your
prospect that your lower priced solution is equal or better than what the=
y
have now.
On the other hand, if you have no such strategic advantage, then selling =
on
price alone can be a very hard sell (I'm assuming here that your product =
is
not a perfect commodity item - i.e. Identically interchangeable). Buyers =
are
particularly wary of players with no track record or deep pockets.
Keep in mind that price alone is but one component of the buy decision fo=
r
capital equipment. Convincing them that you will be around next year to
support their purchase may be a bigger challenge.
I'd start by making a list of compelling sales arguments and evaluate the
importance of price to your prospect's overall purchase decision. Have lu=
nch
with your industry contacts and run it by them... They'll probably give y=
ou
more feedback then you'll know how to handle.
J.P.
--=20
J.P. Solyom, B.Sc.E.E., M.B.A.
Prospecting without cold calling - For a Continuous Stream of Leads
and Qualified Prospects.
(253) 272-0996 =80 jpso...@ksbusdev.com
>=20
> Hi All,
>=20
> This is my first post here. Forgive me if this is not the appropriate p=
lace...
>=20
> I've always heard it said that you should never post your prices on you=
r
> website
> because if you give away every piece of information you have about your
> product,
> then potential customers are not inclined to contact your for more info=
rmation
> -
> if you strategically withhold specific information, then potential cust=
omers
> will have to contact you and then you will have their contact informati=
on to
> follow up and "work" the order.
>=20
> Do you agree or disagree with this philosophy with regards to capital
> equipment
> ($50K and up)?
>=20
> What are the pros and cons of posting your pricing information online?
>=20
> Pro: Your potential customers can know your prices immediately.
> Con: Your competitors will know your prices immediately.
>=20
> Any other thoughts?
>=20
>=20
>=20
> Many thanks!
>=20
> Rob
>=20
Rod H.
"Robert G. Hoover" <not.a.rea...@anywhere.sorry> wrote in message
news:135eo19...@news.supernews.com...
>
> I've always heard it said that you should never post your prices on your
> website
> because if you give away every piece of information you have about your
> product,
> then potential customers are not inclined to contact your for more
> information -
> if you strategically withhold specific information, then potential
> customers
> will have to contact you and then you will have their contact information
> to
> follow up and "work" the order.
>
> Do you agree or disagree with this philosophy with regards to capital
> equipment
> ($50K and up)?
Rob, generally what you are saying is true--especially with big ticket
purchases like capital equipment. However, if you are priced competitively
(i.e., below market), it may be to your advantage to post prices online.
Basically, you can compete on the basis of a low-cost producer or on the
basis of product differentiation. If you are a low-cost producer (and
seller) then you should promote your low prices. If not and you compete on
some other differentiator, then don't post your prices and let your sales
force do the rest.
--
Rod H., MBA, MS
Marketing and Business Performance Improvement Consultant
www.bpi-consortium.com
Jim Logajan
"Robert G. Hoover" <not.a.rea...@anywhere.sorry> wrote:
> I've always heard it said that you should never post your prices on
> your website because if you give away every piece of information you
> have about your product, then potential customers are not inclined to
> contact your for more information - if you strategically withhold
> specific information, then potential customers will have to contact
> you and then you will have their contact information to follow up and
> "work" the order.
>
> Do you agree or disagree with this philosophy with regards to capital
> equipment ($50K and up)?
Unless the product or service involves variable customization which
affects the cost, or is for a long-term supply deal where prices or
quantities may vary with time, I can think of no valid reasons to
withhold pricing regardless of the cost of the product or service. If
your definition of capital equipment encompasses some aspect of the
former description then it is naturally difficult to post a price. You
have to get specifics from the prospect to work out a quote.
But requiring prospects to contact you for pricing simply because you
think it will "force" them to contact you so that you can try to hook
them is, IMHO, mistaken psychology. I think it is equivalent to hanging
out a big neon sign that screams "WE CAN'T COMPETE ON PRICE. PRICES TOO
HIGH TO POST!" Who hides a competitive advantage!?
Given a choice between choosing between vendor X that posts their prices
and vendor Y that insists I contact them first, then for a comparable
product my thinking is that no vendor in their bloody right mind keeps a
competitive advantage a "secret" and I will not bother to contact vendor
Y. The only exception to that might be if the products are not directly
comparable or that vendor Y's product claims more closely matches my
requirements.
Bottom line IMHO is to reduce as much as possible the steps needed to be
taken by a prospect to turn them into a customer. Withholding price info
runs counter to that concept.
In fact if you sell something where a standard estimation formula is used
by salesmen, then I would suggest translating the formula to a web page
calculator that allows prospects to plug in relevant info so they can get
a non-binding estimate.
But if the idea that withholding vital information has any merit, then it
is probably best to not have a web site at all! Or one that just holds a
phone number. ;-) Otherwise I think it best to supply as much product or
service information on one's web site as possible so people have more
opportunities to rationalize a purchase from you.
Tech 22 22
Welcome, Rob!
Hopefully this won't be your last time checking in.
As regards your question, I agree with the prior feedback, but I think I
should assume that your product is one which is (a) not original but
which is available elsewhere. Or (b) at least it's major components are
from popular parts available elsewhere, and their quality is quite
established in the arena in which you are selling.
Examples of (b): a pressure washer with a certain popular model of
compressor or a tractor with a certain model of engine.
Examples of (a): A certain model of printing press or crane
I assuming this based on the price point (quite an expensive item!)
because manufacturers are limited in this range, and the fact that you
are even 'considering' posting it's price online to begin with tells me
that (in your opinion, but not necessarily the buyers) there is little
consultation needed to a buyer who knows they need your product. Ex.
(Caterpillar mini Steam Roller Number 4).
So this would mean that price would indeed be a major consideration in
making your capital goods move.
I'm also assuming you either have an established service reputation, or
more likely are a operating as a manufacturers rep.
Thus...
Generally speaking a safe marketing approach in your case it to:
1) Promote as an equipment consultant, this means having an informative
website and marketing strategy, along with consultative sales, and...
2) Not posting your price but offering "affordability" with "very
attractive terms", inviting them to contact you for initial consultation
(and price details)
An exception to everything above is if your products are selling at far
below market value (At 20 cents on the dollar or more below the range in
the case of this expensive an item). In that case your market is
different also, and so should your marketing approach be.
So in that case either
-Authenticate the quality of the product and offer an established
maintenance plan via the manufacturer or a credible third party or...
- Or raise your price (if you're in the basement) to the bottom of the
average price point and compete there as a consultant - do this with a
consumer advocacy marketing voice. (Shameless plug - you can Google
"consumer advocacy marketing" if you don't follow (and don't be
surprised if one of my articles pops up).
SUMMARY: Don't post the price unless you can validate industry standard
parts, third party or manufacturers service agreement channels/
warrantees, and are several points below the standard bottom of the
price points. This strategy would be launched with an "Advocacy"
Marketing approach. Even then, consider raising prices if sales remain
soft. You'll never sell a diamond for a dollar.
Otherwise, sell your knowledge, present your prices as "attractive" but
do not list, and offer free consultation via the site and at a phone
number with a preferably a real human answering, and a solid qualitative
and informative initial sales presentation.
Good luck to you, Partner!
~zion~
Maren at google
On May 25, 12:16 pm, "Robert G. Hoover"
<not.a.real.addr...@anywhere.sorry> wrote:
> Hi All,
>
> This is my first post here. Forgive me if this is not the appropriate place...
>
> I've always heard it said that you should never post your prices on your
website
sorry if this is an oblique angle, but I always think if people don't
post
a price they're trying to hide something.
We bought some real estate a few years back, and if I hadn't been able
to count out the lots by size from their tax map, and utility poles
from that
we probably wouldn't have bought it. Price was listed on the public
section
of the MLS here then. TMK wasn't. It's a similar thing. The seller
probably
could have gotten a better price than we paid if all the information
had been
on-line.
Withholding information isn't a good idea in any of this, unless
you're of the
opinion that if you have to ask for the price you can't afford it.
- but that may depend on who you're selling to. If you're withholding
information you're not likely to sell to me. -
Aloha,
Maren
Palms, Etc.: Tropical Plant Seeds - Hand-made Jewelry - Plants &
Lilikoi
http://www.jach.hawaii.edu/~maren/palms_etc/
NC
On May 25, 3:16 pm, "Robert G. Hoover"
<not.a.real.addr...@anywhere.sorry> wrote:
>
> I've always heard it said that you should never post your
> prices on your website because if you give away every piece
> of information you have about your product, then potential
> customers are not inclined to contact your for more information
> - if you strategically withhold specific information, then
> potential customers will have to contact you and then you will
> have their contact information to follow up and "work" the order.
>
> Do you agree or disagree with this philosophy with regards to
> capital equipment ($50K and up)?
Sometimes, equipment simply can't be priced until you know the exact
specifications the customer wants and the number of units they wish to
purchase. In the extreme case (passenger airplanes), customers may
even be willing to purchase options on delivery of equipment (which,
needless to say, are not quoted publicly).
> Any other thoughts?
In many cases, list price is of secondary importance compared to lease
terms (implied interest rate, cancellation clause, etc.) Sir David
Tweedy, the Chairman of International Accounting Standards Board,
likes to joke that his lifetime ambition is to fly as a passenger in
an airplane that is actually owned by a major airline (the joke being
that all major airlines lease their fleets). And lease terms depend
on lessee's creditworthiness...
Cheers,
NC
Tech 22 22
..Depends on the product, product life cycle, market, and many many
other things.
Yes there are times when prices are hidden and that makes me wonder what
the problem is.
But each situation needs to be accessed differently. Think about the
following example..
You are selling product where your best customer is a very knowledgable
customer. At the same time, you are in a market where people don't like
to read and prices vary wildly. Your product is priced higher because it
is authentic. But what does authentic mean? it could take 5 Minutes of
reading to discover the answer to that question, and could invite a bit
of history... and your market just won't make that kind of time (let's
say your market is college freshmen).
Therefore if you list your price as 500.00
And your competition lists 399.00, and the product has the same name,
you probably lost the sale in THAT market. The average college person is
going to say to heck with you.
Your product may last 3x longer. may look better. But you lost a sale
because they did not read. In those cases, I feel that listing
"guaranteed best value" with a phone number and "free instant quote"
will take one further than listing a price.
Yet it is important to know the general persona profile of your target
markets. One should be able to spout off what I call a "running
monologue" about just who your market is, and that should include their
intellectual and emotional makeup as well as their values and
contradictions.
If they are an information friendly profile (detail seekers) you can
mount more text at 'em than if they are excitement seekers.
Felix Unger and Oscar Madison from the Odd Couple TV Show come to mind
(names Correct?!)...
Felix strikes me as the eccentric infoholic so his monologue might be
"Starched Urbanish fine-print junkies turned No-nonsense Gray Collars
who can answer anything, inspect, critique, and confront to beat the
band! But parasitically thrives around their opposites"
Oscar was laid back to the point of being a Slob. So maybe he's "Simple
math Bowling Alley Bums with Big TV's. and Lost Pocket Protectors, who's
hobby is making neat people crazy".
Understanding the profiles (which can only be formed by studying the
psychographics - they can't be just made up) helps one structure the
running monologues, which indicates the sales presentation. Ideally one
would have a number of presentations for various markets.
Theres an old saying... if the fish gets away, it's your (the marketers)
fault. Don't blame it on the weather, fickle markets, etc.
One of the biggest marketing mistakes in the history of the world is
this: Belly-Button marketing. To market only in ways that one likes
being marketed too, and to be rigid about it, not willing to change it.
That is belly button marketing. Where you're watching your belly button
instead of your customers patterns! If you do this, you'll have success
with your profile type, flop on perhaps 25%, and 50% will be hit or
miss. That's after full qualification.
Instead, know your market.
Instead, know your market.
A thousand times, know your market. Get all the way in bed with them.
What does your target customer look like when stuck in traffic an their
kids are screaming "Mommy he hit me!"...
How long does a depressed person spend waiting on a phone hold?
What does a classical music loving nurse look like dining alone?
What does a divorced pastor or a 60 year old circus traveler look like
getting ready for bed at night?
Do they ever cry? Why? Why not? Do they use Napkins or a shirt sleeve?
The point is to focus outwards and know your market intimately. Then
market accordingly. That's how the big boys do it. Why should they have
all the fun? ;).
It's a bit less important in B2B sales, but important enough to know it
needs consideration. Until everything is run by computers (Won't be long
now...) and two products have comparable specs, the sizzle will always
be just as important as the steak.
~zion
LAB Enterprises
doesn't have prices listed, I shop somewhere else. Having to contact
them is an extra hassle not worth it imo. I also have the idea that if they
don't state prices, it will be out of my price range.
Lori
Shop for clothes, boots, gothic, jewelry, collectible, Egyptian and more!
LAB Enterprises - ord...@labeshops.com
Read our blog with links to all our stores at www.Labeshops.com
Maren at google
On Apr 9, 8:24 pm, "LAB Enterprises" <n...@labeshops.com> wrote:
> I guess it depends on what you are selling, but as a consumer, if a site
> doesn't have prices listed, I shop somewhere else. Having to contact
> them is an extra hassle not worth it imo. I also have the idea that if they
> don't state prices, it will be out of my price range.
Lori,
while this is an old thread and I have posted to it before, I want to
again stress that I fully agree. In my current experience, shopping
for
beads and jewelry making supplies wholesale I find that sometimes
you only get wholesale prices listed after creating an account and
logging into the website. Then, as often as not, I find that I'm
selling the same for about the same or less than what those
'wholesalers' are asking. While I could afford that, I couldn't resell
with a markup, however marginal the markup may be.
Maren
HiloBeads: Beads - Beading Supplies - Hand-made Jewelry
http://www.hilobeads.com/