Question:- Why should I show my prices on my website?
I’ve been thinking about whether or not it’s wise to put your prices clearly on your website after a discussion with one of my clients the other day. This is quite an emotional topic with some strong feelings one way or the other and I’m no different in that I believe that you should be clear and open with your pricing in all areas of your marketing (not just your website).
However, I do recognise that some believe it is downright stupid to show your prices. They believe that if you show a price before you’ve had a chance to demonstrate the value of what you’re offering, many people will look at your price, get sticker shock, and never come back. Or, they’ll see your price, then just look for someone else whose price is lower, and then choose the lower-priced option because you haven’t had the chance to demonstrate why you are better than your lower-priced competitors.
Here’s some of what they believe:-
“My competitors will know what I charge and will try to undercut me”
Newsflash: Here’s the thing, your competitors probably know your prices anyway. Just like you do, they check you out.
“It’s too complicated – every client is different.”
Yes, your clients are different, but most will be asking you to perform similar types of activities – just different combinations of the same tasks.
Those in this camp believe you will lose way more clients than you will ever gain from the strategy of showing your prices and in some cases, I agree with this assessment. There are many businesses that do need to demonstrate their value before they quote a price or else they risk scaring potential clients away.
This highlights three things about these kinds of businesses:-
- Their website / social media presence doesn’t demonstrate their value, which necessitates an in-real-life interaction to prove their worth. Their sales processes are actually built around the traditional sales meeting. The website is effectively an online product brochure.
- They don’t understand the concept of ‘Threshold Resistance’. Threshold resistance is the Psychological barrier that stands between a shopper and the inside of a store, whether this be a physical store or a website.
- They are looking for anybody with a pulse and a wallet. This includes those who are price shopping.
If this is the case for you and your business then it’s probably a bad idea for you to put your prices on your website. If you’re struggling to communicate your value without a face to face meeting (even if it’s virtual) then allowing an easy way for your prospects to do a direct price comparison is probably a bad idea. (Click here to get access to my step by step strategy for developing a world-class value proposition).
However, if you do have a distinct and compelling value proposition which is clearly communicated via authority-building content on your website that makes the case for buying your product or service. Then I firmly believe that putting your prices on your site is one of the keys to a successful small business.
Here’s why showing your prices on your website could have a massive impact:-
Saves Time.
Pricing transparency immediately weeds out bargain shoppers. These are those people who will never appreciate the value of your service, they’re only looking for the cheapest option. They’ll waste your time and even if you do sell them something they’ll be expensive to service. All of which means you’re unlikely to make any real money out of them.
If you want a healthy, profitable business, you must have a decent margin on your work, and that will never be in line with a customer whose only concern is the price point (which is a short-sighted way to make business decisions). In reality people make decisions based on the value they think they will receive, it only comes down to price when they can’t perceive any difference in value.
I don’t advise that any small business waste their time trying to woo someone who is never going to spend the money you need to charge to have a healthy business, and would rather those people weed themselves out.
Reduces Threshold Resistance.
Would you enter a shop where you’ve no idea of the prices, where you’ve got to go and ask the sales assistant what things cost. Some people would, but the vast majority of people would walk away. It’s the same with your website. Showing your prices allows people to make an informed decision based on their budget. It should be part of your prospect qualifying process.
Avoids the awkward budget question.
If your prices are not on your website, and your sales process involves a meeting, it’s inevitable that at some stage during the meeting you’re going to be asking the prospect about their budget in order to establish whether they are a potential fit. I know I personally feel uncomfortable when a business asks me about my budget… it feels as if they’re going to skew their pitch or prices to meet that number, rather than focus on the problem at hand.
The other point is that most customers have a budget in mind. There might be a bit of flexibility but do you really think there is anything you can say when you talk on the phone or meet face to face that will persuade them to pay way more than they intended? Probably not.
If they’ve already been exposed to your prices then you’ve set their expectations as to what they need to budget. This can have the effect of taking the price question out of the discussions allowing you to focus on the value you deliver.
Final thoughts.
With the right value proposition in place which is clearly communicated then putting your prices on your website will actually help you attract prospective customers/clients. Most people do research on price/value before they consider buying a product or service. If you’re the only person in your industry talking about price/value on your website – you’ll get more traffic to your site than your competitors, which should mean more leads and sales.
By the way, if you think that your prices are commercially sensitive and perhaps people would be put off by your prices, check out Boeing (click here) you can find out the list price of their entire product range, everything from a Boeing 737 (average price $110 Million) to the latest Boeing 787 (average price $300 Million). If Boeing can publish their prices surely you can..
Would you like help to raise your prices? Why not book a 1-2-1 where we can discuss pricing. Click the button below.
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