Maybe you already don’t post everything online, except for your starting rate. Good for you. Did someone tell you not to do that?
Why? What if they were wrong? Let’s explore the reasons why it is so and not simply do what others have said.
There are good scenarios where prices should be posted online. For example, McDonald’s! McDonald’s is a quantity-based product where prices is a one of the many lures that they use. In fact, they encourage you to compare their prices with competitors! I’m pretty sure that they’re the cheapest, thus victory.
Ever walk into a Furla or Gucci store? Are prices marked everywhere so that you can see them immediately? No. Why?
Their goal is not to offer the cheapest purse; it’s the wonderful feeling you get when you sling a designer purse over your arm. If it’s utility you’re looking for, there’s a whole rack at Walmart for $20.
You’re not selling a utility. You’re selling an experience.
By itemizing, it allows consumers to make comparisons before even understanding the value. Made up example – Fendi vs. Dior. Let’s just say that both of them have prices up on their store windows and that they’re contiguous to each other.
A shopper named “Julie” might saunter by and get captivated by a beautiful black Dior purse that would look absolutely adorable with a newly purchased evening gown. She gazes up and it reads, $2000.
“Lawrence would kill me if I bought one now. I promised to tone down my spending too,” she thinks to herself.
Oh wait, right next door has a similar one by Fendi for only $1700. And it’s even bejeweled, so it’s mildly ostentatious! Feeling giddy, Julie darts through the grand doors and surveys it momentarily before purchasing.
Without even giving Dior’s purse a chance, Julie made the comparison – size, looks, brand, status are all about the same. What about quality? Who knows, maybe that Dior purse is the purse that Angelina Jolie wears for the red carpet debut for Salt and the price thereafter sky rockets!! No chance now. The decision was made. Dior lost the business despite being a better buy.
Here’s a simplified example: I go to CVS in need of Tylenol. I pop over to the medicine aisle and see that there’s a generic version. Tylenol has Acetaminophen; so does the generic version. Tylenol has crospovidone; so does the generic version… Gosh, it’s practically the same, except that the generic version is $5 cheaper. Done – generic version it is.
We’re not pharmacists. Generic versions might be leagues weaker, but through outright comparison, we made a choice, which may or may not be the right one.
By publicizing rates, it allows consumers to perceivably gain through lost value. So continuing the use of Julie as my character, she saw the immediate savings by comparing the store fronts. She thinks – similar purse, equal status, but $300 saved!
“With that $300, I could get myself a matching pair of shoes!”
Again, poor poor Dior loses out on the business. Fortunately, in real life that’s not the case.
So let’s say that a bride publicly saw that Joe and Jane charge the same price, except that Jane includes an engagement session and an album in that package. The likelihood for said bride to contact Jane and never Joe is very high for the aforementioned reasons.
The goal here is to allow yourselves a fighting chance to share with your clients why you are so wonderful. Otherwise, people will just walk on by.
However, it is okay to put your starting price. Just don’t (reason #2) itemize it by saying it includes this, this, this and this.
What I want you to do now…
- If a light bulb moment went off, please share it with the Retweet button below or via facebook.
- Comment below if you’ve had a similar story because I love stories!
- Got a question? Comment your question below and I will either reply or make a follow-up post
P.S. Julie – if you’re reading this, don’t hurt me. It was JUST AN EXAMPLE. We can go shopping later today because I know that you’re sick.
P.P.S. I was asked via comment last week why I never tell my Tofurious readers what to do. Isn’t learning why much better? I firmly believe in understanding strategies rather than mirroring actions.