In today’s digital age, one of businesses’ most critical decisions is whether or not to display their prices online. It’s a delicate balance between providing transparency and maintaining the perceived value of your services.
On the one hand, if you openly list your prices without any prior interaction and engagement with your prospect, your potential customers may overlook the value you provide or, worse, become suspicious of the quality of your services due to comparison shopping.
On the other hand, if you make it too difficult for prospects to obtain pricing information and have them jump over hoops to get pricing details from you, it may be off-putting due to the time and effort required, and they will end up leaving the site.
So, which approach is the best? Here, we explore two different trains of thought and SOLUTIONS on this matter.
1. The conventional approach
You choose not to state your prices online and let your prospect read through your Copy and get them excited so that they fill out a form to demonstrate their seriousness. And once they submit the form, you or your Team reach out to them to address their needs.
The old-school methodology of getting your prospects to contact you for pricing information might work best if your business has an established customer flow with plenty of marketing roots to bring in leads for your sales team to convert. And possibly, there is very little competition in your marketplace as you are the Go-To Business.
If you opt for this approach, ensure you invest and jazz up your website to attract the customers you want. Your website is your virtual storefront.
2. The Digital Approach
If you choose to display your prices online, it can save you time and energy by filtering out non-qualified prospects and those who may not be your ideal customers.
By providing this level of transparency, you can attract the right type of customers while repelling the wrong ones, making it a win-win situation.
However, in today’s digital age, where information is readily available, prospects’ patience is limited, and competition is high, it’s essential to provide pricing information upfront to help potential customers make informed decisions in a timely manner.
With so many options available, prospects have limited time to shop around, so displaying your prices online can help you stand out in a crowded market.
New-Age Pricing Practice.
Therefore, the next question is how to increase your chances of conversion when times are tough; you don’t want to lose any prospective buyers who may fit within your asking price, but on the other hand, you do not want to waste time with buyers who cannot afford your services?
If you want to capture two or more market segments (customers with different budget expectations) and address the “how-long-is-a-piece-of string” type of scenario, I would recommend using the Tiered-Pricing model.
Tiered-Pricing provides a pricing structure from the lowest (Starter) to the dearest (Premium) fee scale, leading to a “Get A Quote” call to action for customisable needs.
You can have a 3 to 5-tier service range for your service business. Here are msome examples
Integrate Live Chat To Improve Conversion.
Depending on what you’re selling, you will have customers that need to contact or engage with you or your team to confirm a particular sale.
Take advantage of technology such as Live Chat that allows prospective customers both convenience and the engagement opportunity to interact with your Business.
By using this approach, they will not only have access to necessary information for making educated decisions about products/services, but they will most probably buy once they understand the price vs value proposition.
This technology has revolutionised how businesses connect with customers and build relationships. The most significant benefit of live Chat is its ability to provide immediate customer support and pricing explanation. With a live chat agent available 24/7, customers can get their questions answered quickly and efficiently, reducing wait times and improving customer satisfaction.
In conclusion, the age-old dilemma of price transparency continues to challenge businesses. By being aware of the two primary methods: the old-school approach and the digital approach, business owners can pick which method works best for them and their businesses. To keep up with current times, engaging in new-age pricing practices such as integrating a live chat option on your website is advised. Doing this will help inform and convert customers more effectively.
Remember stating your prices online has both advantages and disadvantages. It can make your Offer appear as a commodity like the rest of your competitors, or it can attract the right kind of customers for your Business, thus optimising your time and resources spent on qualified prospects.