When you shop online, do you seek out prices?
To quote Fawlty Towers, if I were to be on Mastermind, my specialist subject would be “the bleeding obvious”. That is to say – online shopping is massive.
We all use our phones and computers to seek out what we want from life – from clothes to holidays, new boilers, pets, to second hand furniture and bee keeping suits. The sky’s the limit and just a few clicks away.
With this comes a dilemma for a lot of businesses both big and small. Should prices be listed don the website?
Whether or not to display prices on your website depends on a lot of different factors (like your business model, industry, and target audience).
Let’s break it down together.
Reasons not to list your prices online
- What is everyone else in your industry doing? If there is a company you aspire to be like, watching if/how/when they release prices can be a helpful indicator of what’s expected in your industry, or how to do it without falling into traps like underpricing your services.
- If your service is very much a custom built operation, listing prices can be difficult, if not impossible. Those of us who need to assess a situation before pricing up may find that we have to keep shtum. There’s nothing wrong with that, but being aware of why you’re making these choices is important.
- Not listing a price can be an indicator of value. We’ve all heard the saying “if you have to ask, you probably can’t afford it.” This ethos can be applied very neatly if you happen to provide a luxury brand or operate in a wealthy neighbourhood. It also works well if you can clearly demonstrate the impact your service has. For me, it’s all about getting as much online attention on a business as possible. I can take a Facebook page from 0 to 100K local views in a month. This proof allows for more discreet approaches to pricing.
- It encourages people get in touch. Not listing a price can help you get people on the phone, in order to pitch and close a sale more efficiently.
- Not listing prices on your website can allow the company up the road to publicly undercut you. This may not be a concern if you’d rather be known for reputation and customer service – “being costly, but for good reason.” This decision can come down to holding your nerve.
The best time to list prices on a website
- Transparent pricing on your website can allow potential customers to relax. Some say it builds trust, I say it lets them compare value with other companies. This has its pros and cons based on the age and purchasing behaviour of your demographic (Boomers will typically judge value for money before quality/Gen X care about spec etc).
- When your customers know the price, it separates the wheat from the chaff. Those with a low budget will clear off, supposedly leaving those who are serious about making a purchase.
- Listing your prices does require a certain level of confidence. This can be attractive to your customer base.
Is there such a thing as hybrid pricing?
- Pricing tiers can be helpful to give ballpark figures. It allows your customer to manage their expectations regarding prices and gives them insight into what they will get for top-dollar services/products.
- Some companies will exchange pricing structure in exchange for contact details such as an email address or phone number. I’ve never loved this approach, simply because it can get companies into hot water regarding GDPR. If you’re reading this and aren’t sure if your privacy policy covers whats needed, we should talk.
- Starting at pticines are very popular from cake makers to home clearance services. This gives the business some grace to assess an enquiry on an individual basis whilst maintaining a certain level of transparency for the customer. Again, it’s managing expectations. If you find customers are consistently “shocked” by your quote – this option can be helpful.
Can I test pricing in my business?
Yes. Business are always evolving. This might mean publicly advertising prices one year, but not the next. There’s no shame in experimenting to see what works for you.
Read my blog on how to price your services here.
About the Author
Catherine Jarvis Clothier is a digital marketer and online presence specialist living and working in Kent, UK. She has worked in unusual UK businesses for over 10 years across the South of England, particularly in automotive and therapy-based enterprises. Catherine specialises in social media, SEO and web design. She can be contacted here for online business consultations.