Have you ever searched online about how much something costs? Absolutely, if you’re alive, you sure have. But when you are on a company’s website and there is nothing about the costs of their products or services, what is your reaction? Frustration, right?
But, let’s think about this together for a minute. What give you the right to be frustrated when you’re on a business’s website and can’t find any cost or price information?
For a start, you’re frustrated because you feel like you are wasting your time and not getting the answers you’re looking for. You’re thinking to yourself, I am the customer, It’s my money, and it’s my right to know.
But, if you look at it at a deeper level, the truth is, you’re upset because you know the business knows the answer to this question. And because, you know that they know the answer, you now feel like they are hiding something from you. In most cases, the moment you feel like anyone is hiding something from you, all trust is lost.
Instead of continuing to dig on their site for more information or calling them directly, in today’s world, you will be looking at some other similar sites.
And you will keep looking until you found the answer and whoever answers your question first, in most cases. is the one who will get the phone call or contact. They’re also the ones likely to get your business. In other words, they are the one who has earned your trust.
This “search behavior” is consistent for just about any company and culture around the world. As consumers, we expect answers. If we don’t get them, we get upset and leave.
With that being said, Do you, right now, on your company site, talk about the cost of your products or services? If you are like many others who do not reveal their pricing, maybe now you're contemplating why you do not do so. It doesn’t matter whether they are B2B or B2C businesses or whether they are products or service-oriented, only a small percentage ever address the question of pricing and cost.
The big question here is Why? Generally, there are 3 reasons why businesses justify not discussing this subject on their website.
- Every solution is different, so prices will vary.
- Afraid that competitors will find out.
- Afraid that customers will shy away after seeing the prices.
Every Solution Is Different
I am sure this statement is true but let’s look at it this way. Most consumers understand that prices will vary but you can at least give a sense of what to expect and some possible price ranges.
As a business, you need to ask yourself whether it is possible to discuss this question of variable costs? Can you explain the factors that keep the cost downs or the factors that can push the cost up? Can you help the readers, viewers, and customers understand all the factors that dictate cost within your industry.?
Chances are if you want to give your potential customers how pricing work within your industry or within your company, you could very likely do it.
Afraid That Competitors Will Find Out
This one is an open secret because most companies already know exactly or at least have a very good feel, as to what their competitors are charging. It’s almost like saying you have a “secret sauce” when in reality, everyone knows that it’s just any barbecue sauce you can find in most supermarkets. Come to think of it, why do you let your competitors dictate your ability to educate and ultimately gain the trust of your potential customers.
Afraid That The Customer Will Shy Away After Seeing The Prices
Think about this for a second. it’s like saying, “if I am honest, people will not want to do business with me”.
As consumers, the thing that actually scares us away is the idea of a company not addressing cost and price on their website. Let’s say you‘re taking a friend to dinner and have decided on a restaurant you’ve never been to before. Like most people, you will go to their website and look at the restaurant, the decor, and of course the menu and you find the list of dishes but no prices!! You certainly will not go to that restaurant, not because you cannot afford it but because dishes without prices have planted the seed of doubt in your mind as a consumer.
Friends, discussing costs and prices is not about affordability, it’s about psychology and trust. And, almost every business can do it, if they want to.
Many a time, I heard this from my fellow sales colleague that whenever a potential customer called up, within the first 5 minutes of a conversation, the customer will hold the conversation and ask “ could you at least give me a feel of how this is going to cost”. The salesperson will want to talk about the product's benefits and features but the customer, on the other hand, would want to know about the price almost immediately. If we are in the customer's shoes, we would want to know the same thing. In other words, as buyers and consumers, we at least like to have a sense of how much things cost before we spend time listening and learning about the features of the product.
If you start thinking like a consumer, you will realize that one of the most important content to produce would be the one that addresses costs and prices. You can explain the type of packages and price ranges and what the customer expects to get.
The fact that less than 50% of the businesses address costs and prices, meant a blue ocean of opportunity for your business. The marketplace is eagerly waiting for someone to be open and honest enough to address this, costs, and prices.
Once you do this, it will definitely bring more traffic to your website but more traffic doesn’t mean more sales. Through the website, the potential customer will get a feel of the price ranges and the features that come with it and through this education, come a feeling of trust and many will eventually want a quote or contact the company for further discussion. Eventually, some of these will be converted into sales.
Fellow readers, this is the power of honesty and transparency and seeing yourself or your business as a person of authority in providing and educating potential customers.
What happens if you disclose your prices and your competitors charge much cheaper? For this you will need to find out why is their product or service is cheaper? But I can tell you, usually this has to do with overseas manufacturers, low-quality materials, sub-standard customer service, and so on. And you need to explain and highlight this on your company’s website as to why your product or service is pricier than others.
In almost every industry, consumers make poor buying decisions and purchase the “cheaper” products or services, not because they are solely price motivated, but rather because they don’t know any better. They have not been informed or not been educated because no one bothered to explain the good, the bad, and the ugly side of the industry. And this is the fault of the business, not the consumer.
So, you must be willing to answer the most important question (costs and prices) regardless of whether you’re a service or product-driven company. Or, would you prefer that your competitors be the one who answers the question for them? Remember, potential customers are going to get the answer from someone, wouldn’t you prefer they get the answer from you.?
So, Would It Be Possible For You To Address The Question Of Pricing And Costs On Your Website?
Remember, this is not putting up a “price list” on your site. Rather, it is to specifically address the main pricing questions you get. To do this effectively, you need to complete the following activities:
a. List all the products or services you are offering
b. Once this is complete, identify the items and services that generate the most revenue and have the opportunity for you as a company.
c. Now for each one of these, produce at least one article and video explaining the factors that dictate costs, what the buyer can expect to see in the industry, and where you are as a company.
d. Place the contents on your company website.
e. Start using the content throughout your sale process.
You will be pleasantly surprised with the increase in traffic to your company’s website, increase inquiries on quotes, and people wanting to contact you for more information.
Hope this article is useful to you. See you all in my next article.