Should you make your prices public?
Imagine you are shopping in a supermarket and you notice that there are no prices on products. You have to contact the employee every time to know the price of each product. Not only do you have to apply, but you will also have to wait for them to come to you and whisper the price in your ear so that other buyers do not hear it. Do you want to taste exotic juice? The site promises a 40% discount, but the price can be known only after you apply online. That is the same for all fields, from website development prices to silver jewelry E-commerce.
Advantages of hidden prices
In the early stages of Internet technologies, everything was much clearer and transparent. Then new professions appeared in the background of the market demand. SMM specialists, Email marketers, brand managers, etc.
The Social media marketers started to circulate terms such as "lead generation", "clickbait", "retargeting" " and, persuaded start-ups to hide prices.
And generally, if you delve into details, market professionals might be key for successful business performance. So you will have to have an SMM specialist, who will do all the content thing, including Facebook, Twitter, and Instagram, grow an audience, build brand awareness, and ultimately boost sales.
The improvements of technologies and algorithms are progressing very quickly. And today the network algorithms value high-profile publications and show them to more and more people if the content is engaging, so each user asking the price or leaving comments below the content generates engagement. Only these algorithms are "smarter" than some marketers distinguish real interest from spam rating or hundreds "+" signs.
So, what are the pros?
- The absence of prices on social networks makes keen customers ask questions and leave comments. The algorithm considers these kinds' of posts useful, it increases the views, submitting bids to websites increases conversion.
- If you have a good sales manager, it is worth losing a few potential customers by not announcing the price, while selling the product/service at the highest possible price during individual communication.
- If you do not have direct sales, and you provide a "complex" service, hidden prices may be justified.
Disadvantages of hidden prices
It is indisputable that the price secrecy, along with the positive impact, causes negative emotions. Then why do we, as sellers, do anything that might freak out the buyer?
- "Everyone does, I do too." Unfortunately, doing what most people do is a classic business mistake. Because of this mistake, most potential customers simply ignore the offer.
- "My product is for 'elite',but, until the buyer sees the quality, visually the price will still scare him."
- "It is easier to explain the benefits by personal letter or phone; you can sell more." This is often said by people who accept the promises of the golden mountain under the guise of "sale" and have not even heard of SPIN.
What to do then?
Then, what makes businessmen break the rules, make a habit of what they would not like as a customer?
- In the case of new products, it is a common custom to overpriced price, to announce a discount after a few days, to bring it to the normal price.
- There is also an unfair case when the market sets different prices for each customer.
- A deeper, reason for the price secrecy is the fear of losing a customer due to the high price.
Whether to publish the prices or not is a personal choice of each entrepreneur. However, experience shows that the potential buyer "feels" the signals of transparency and fair competition.
By the way, from the very beginning of our activity in 2009, regardless of the economic situation, crises, the exchange rate, dumping of competitors, Astudio always publishes the prices.
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