Have you ever found yourself browsing a website, eager to know the price of a product, only to be met with the dreaded "Call for Price" message? It’s frustrating, right? Now, imagine this scenario multiplied across hundreds of buyers, all trying to decide whether to purchase from your site or a competitor’s. This is a common dilemma for distributors: should you display pricing online?
Let's dive into this debate and explore the ins and outs of displaying prices online, and why this decision is more crucial than ever for your business.
The case for not displaying prices online
Many distributors opt to keep their prices hidden for various reasons. Here’s a closer look at why some prefer this approach:
Restricted sales channels: Some organizations don't sell to everyone. They have exclusive deals and contracts with specific businesses, meaning they don't need to display prices to the general public. By requiring potential buyers to log in, these companies can ensure that only authorized users see the prices tailored to their contracts. This approach helps maintain the integrity of their pricing strategies and protects sensitive pricing information.
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Competitive concerns: Another reason for not displaying prices online is the fear of competitors undercutting them. In a highly competitive market, publicly displaying prices can sometimes lead to a race to the bottom. By keeping prices hidden, companies can negotiate individually with customers, providing bespoke pricing that reflects the unique value each customer brings.
The case for displaying prices online
On the flip side, there’s a strong argument for making prices visible to everyone. Here’s why:
Customer expectations: Today’s customers expect transparency. They want to know how much a product costs without jumping through hoops. When prices are hidden, potential buyers might quickly leave your site to find a competitor who is more upfront. If a customer can’t find the price on your website, they are likely to assume it’s too high or that your business is not as transparent as others.
Ease of search and purchase: Displaying prices online simplifies the purchasing process. It allows potential customers to make quicker decisions and reduces the time your sales team spends answering pricing inquiries. This streamlined approach can lead to more sales and higher customer satisfaction.
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The hybrid approach: Best of both worlds
For those who see merit in both arguments, a hybrid approach might be the answer. Here’s how it works:
Public vs. secure pricing: With a hybrid approach, you can display list prices to the general public while providing discounted or special pricing to your loyal customers once they log in. This method captures a wider audience—new customers can see your prices and decide to purchase, while returning customers feel valued with their exclusive rates.
Capturing a wider audience: This strategy can help you attract both new and existing customers. New visitors get the transparency they crave, and returning customers get the personalized pricing they deserve. It’s a win-win scenario that helps build trust and loyalty.
An important note — your existing customers are your bread and butter. They expect to see their contract prices online. If they don’t, they might revert to old purchasing methods like emails, faxes, or phone calls. Make sure your digital solutions cater to these needs by displaying contract prices once they log in.
Final Thoughts
Deciding whether to display pricing online is a critical decision for distributors. Both approaches have their unique advantages: keeping prices private can protect your competitive edge and maintain flexibility while being transparent can attract new customers and foster trust. A hybrid strategy might just be the perfect balance, offering the best of both worlds.
When making this decision, consider what aligns best with your business model and customer expectations. Whether you choose to display prices publicly or keep them behind a login, the key is to be clear about your approach and consistent in its execution.
Think about your target audience, your market positioning, and how your pricing strategy can enhance your overall customer experience. This is not just a pricing decision; it's a strategic move that can shape how your customers perceive and engage with your brand.
