One of the most controversial decisions for business owners is whether to post their prices on their website. This is not a decision that should be made lightly, particularly because there is a stack of arguments on both sides. Even so, the price is one of the most important pieces of data in the buying cycle, so it is important to weigh the pros and cons:
Pros
1. Displaying your price upfront eliminates obstacles for your customer, since he or she does not have to call or email to find out what your charges are.
2. It eliminates the problem of negotiating, liaising and quoting for jobs, which tend to take up a huge chunk of your time. Since you still need to state the prices anyway, you might save much time by dealing with it head on.
3. Most clients that visit your site will likely already have a budget in mind. Even if they are not 100% sure about it, you might save yourself a lot of trouble by simply allowing them to move on, if they cannot afford what you’re offering.
Cons
1. When you publish your prices, you run the risk of cheapening your brand. It is sometimes possible to retain a sense of mystery by remaining ‘priceless’, and it also gives off the feeling that you are high-end.
2. In case potential customers compare you with your competitors based on price alone, you could end up looking expensive, especially if they do not take into account factors such as your experience and specialist services.
Best Practices
There are certain things you must do to make price transparency work for you:
1. Research: Find out what your competitors’ prices are, check your past pricings and consider a survey before taking the plunge.
2. Point your difference: Make it clear why your service or product is better than those offered by your competitors.
3. Extras: Include additional elements to boost the value of your services with little cost to you, such as downloads or eBooks.
4. Review: Your published price should be reviewed every three months. Compare your prices to your competitors’ and review the market trends.
5. Reward loyalty: Even if you increase the prices for new customers, try retaining the previous prices for your loyal customers, or give them a special discount.
6. Experiment: Try different price strategies for your site, such as creating a sales landing page and promoting it.