Don’t “cave in”pricing your products lower online!
Lately I have been writing about how online marketing can help businesses in various aspects. I hope you are finding this information useful!
Today, I would like to talk about pricing your products on the internet. As you know, customers are accessing the internet more than ever. They are also on the go – with their mobile devices in hand, as they walk down streets, getting onto streetcars and trains, as they sip coffee in a shop… you get the point!
There are two views to pricing your products on the internet. I’m here to explain this to you.
The first view is that pricing your products and make them viewable to customers (and your competition as a result) will eventually force you to lower your prices to remain competitive. This means your pricing in translucent in the marketplace and you’re helping your customers gain knowledge about products and services available with your company. Because of this, you hold the view that prices will decrease, and that your product could become a commodity.
The second view is that you don’t feel you should be reducing pricing. The reason is because of brand loyalty. You feel your customer will become loyal to you and that you develop a positive relationship with them. For example, there are many booksellers on the internet, yet most still go to Amazon. Why? Because customers have already established accounts and they are familiar and love other value adds like their streamlined ways on shipping the product to your customers very quickly. Because the customer is comfortable, they are less likely to seek ways on how to bargain hunt to drive lower prices.
Applying what you have learned
If you want your customers to be loyal, treat them well. Take care of them. Call them on their birthday. Offer them incentives so they keep coming back. Tell them about what you are up to using social media, and give them insight as to who you are as a person.
What is your opinion in regards to pricing your products or services on the internet?