Should you Reveal your Pricing?
Should you Reveal your Pricing?
By Jacqueline Drew, B.Comm
President, START Marketing Inc.
www.startmarketing.com
Have you ever walked into a high end store where there were no price tags on anything, and then gotten the distinct feeling that “if you have to ask the price, you just can’t afford it?” We all know that this kind of secrecy surrounding prices makes people feel nervous. Most will leave rather than be embarrassed by having to ask the price and then admit it’s out of their price range.
But there are many businesses who still take that approach. And most of them are service businesses doing custom tailored work. Like, What does it cost to get a trade show display designed? How about chartering a private plane? How about enlisting the services of an advertising agency? For the most part, you’re left in the dark.. But if you own such a business, here are a few reasons why you might reconsider your pricing secrecy strategy:
1. First, if there is no information on the costs, people will assume it’s a lot more expensive than it is. So, then they put it off altogether. Did you know that for many destinations, it’s cheaper to charter a small private aircraft for a group of four people for less money than it costs to buy four commercial tickets? But if you can’t easily find out the costs of chartering, then people will continue to assume it’s only for rich businesspeople!
2. If there’s no indication of fees, people will never be able to plan to the costs. Typically businesses budget for things well in advance of actually buying them. So even if the price you post is expensive, at least they can plan for it.
3. By posting an indication of your fees, people will get the impression that you are unafraid of your competition. And why should you be afraid? If you are the market leader, posting your pricing is more likely to convince your small competitors to raise their prices, not lower them. And if the competition doesn’t post its rates, people will likely assume they’re most expensive.
4. Finally, by posting at least “budget figures” for potential clients, you can weed out your workload of preparing custom quotations for clients. The prospects who do call you will then only be the ones who have already mentally prepared themselves for the costs. And the quotations you prepare will be very well qualified.
The upshot is, if you at least give people approximate budget pricing they can work with, they will be much more comfortable calling you for service.
Should you Reveal your Pricing - To learn more about this author, visit Jacqueline Drew's Website.
Like this article? Share it with your friends
Should you Reveal your Pricing?
By Jacqueline Drew, B.Comm
President, START Marketing Inc.
www.startmarketing.com
Have you ever walked into a high end store where there were no price tags on anything, and then gotten the distinct feeling that “if you have to ask the price, you just can’t afford it?” We all know that this kind of secrecy surrounding prices makes people feel nervous. Most will leave rather than be embarrassed by having to ask the price and then admit it’s out of their price range.
But there are many businesses who still take that approach. And most of them are service businesses doing custom tailored work. Like, What does it cost to get a trade show display designed? How about chartering a private plane? How about enlisting the services of an advertising agency? For the most part, you’re left in the dark.. But if you own such a business, here are a few reasons why you might reconsider your pricing secrecy strategy:
1. First, if there is no information on the costs, people will assume it’s a lot more expensive than it is. So, then they put it off altogether. Did you know that for many destinations, it’s cheaper to charter a small private aircraft for a group of four people for less money than it costs to buy four commercial tickets? But if you can’t easily find out the costs of chartering, then people will continue to assume it’s only for rich businesspeople!
2. If there’s no indication of fees, people will never be able to plan to the costs. Typically businesses budget for things well in advance of actually buying them. So even if the price you post is expensive, at least they can plan for it.
3. By posting an indication of your fees, people will get the impression that you are unafraid of your competition. And why should you be afraid? If you are the market leader, posting your pricing is more likely to convince your small competitors to raise their prices, not lower them. And if the competition doesn’t post its rates, people will likely assume they’re most expensive.
4. Finally, by posting at least “budget figures” for potential clients, you can weed out your workload of preparing custom quotations for clients. The prospects who do call you will then only be the ones who have already mentally prepared themselves for the costs. And the quotations you prepare will be very well qualified.
The upshot is, if you at least give people approximate budget pricing they can work with, they will be much more comfortable calling you for service.
Should you Reveal your Pricing - To learn more about this author, visit Jacqueline Drew's Website.
Like this article? Share it with your friends
| |||
 |
No article feedback found. | ||
|
Leave Your Feedback | ||
|
|||
 Should you Reveal your Pricing?
| |||
| Many businesses are afraid of the competition finding out their pricing, and keep rates hidden. The problem is, they waste a lot of time preparing quotations for customers that just aren't serious buyers, who mere... |
|||
|
Revealing Ourselves
| |||
 We reveal ourselves in many different ways: By the people with whom we associate, the way we use our free time, our clothing, our sense of humor, etc. We even reveal ourselves by the way we walk, talk, the way we ha... |
|||
|
Pricing Your Products and Services for Ultimate Growth
| |||
| Charging the right price for your products is essential for growing your business. Learn how to price your products and services appropriately for fast sale! |
|||
|
Business Coach or Executive Coach: These are the Top 7 Reasons Why You Need A Pricing Schedule
| |||
| Are you a business coach or executive coach? Do you have a pricing schedule? If your goal is to increase sales, maybe this is the place to start. |
|||
|
Price The Direct Link to Your Bottom Line
| |||
| Setting the correct pricing strategy for your products and services is a great challenge. Pricing has tremendous impact on your profits, because pricing not only determines the quantity sold, but also the direct con... |
|||
| |||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
 Jacqueline Drew (Visit Jacqueline's Website) Jacqueline Drew is the President and Principal Consultant of START Marketing Inc., a strategic marketing and sales consulting business based in Calgary, Canada. She is a national radio columnist on CBC Radio in Canada, and has consulted with hundreds of clients across a broad range of industries.
|  |
 |
|
|
 |
|
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
 |
 | ||
 |
||
 |
||
 |
||
|
| ||
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 |
 Radical Green Business 3 Deadly Traps What’s Wrong With Your Site? Non Disclosure Agreement Corporate Secrets |
|
 | ||
 |
The Top 10 ProBlogger Posts
Best Posts for Bloggers | |
 |
Top 50 Niche Blogs 2009
Top 50 Niche Blogs 2009 | |
| ||
 |
|
|
|
|
||||||||||||||||||
 |
|
|
||||||||||||
