How much does it cost? It’s probably the first and foremost question that we as consumers have. Whether we’re shopping for a product or a service, we want to know how much it’s going to cost. Where do we find that information? Generally speaking, online. We’ll go to a company’s website to do our research. But if you find that there’s no pricing, how do you feel? Probably frustrated. You feel like you’re wasting your time and not finding the answers that you’re looking for.
In Marcus Sheridan’s book “They Ask You Answer” he says, “… you’re upset because you know that the business knows the answer to the question. And because you know that they know the answer, you now feel like they are hiding something from you.” Good point. He goes on to say that in today’s society we don’t then call the business to find out the pricing. We used to. But today we keep looking – and you do it elsewhere. He continues, “Whoever is willing to answer your question first, in most cases, is the one who will get the first phone call or contact. They’re also the one who will likely get your business. In other words, they re the one who has earned your trust.” Providing answers, like pricing = earning the trust (and business) of your customers.
Aside from earning the trust of your customers, here are 3 objections to posting the price and 3 reasons why you should.
Objection No. 01: Every solution is different. Our prices vary.
While this may be true, the real truth is that customers don’t care. They just expect some sort of possible range of price they can expect. Even if you can’t be specific, you can discuss the goes into the cost, what elements raise the cost of a project and how they can save money. Earn their trust by helping them understand the factors that dictate the cost in your industry as they’re doing their research.
Objection No. 02: If we discuss pricing on our website, our competition will find out what we charge.
The reality is that your competition probably already have a good feel for how much you charge. They can easily ask around and find out. So instead, be upfront and earn the trust of your customers with full transparency.
Objection No. 03: If we show what we charge, we’ll scare customers away.
Honestly, what really drives customers away is not showing what you charge. Think of it this way – you’re going out to dinner to a restaurant you’ve never been to before. You go online to check out two things: reviews and prices. But then discover they don’t show their prices. What do most consumers do? They choose not to go there. It’s not that they can’t afford it, but it’s planted seeds of doubt in your mind as a consumer – and with seeds of doubt, inaction and the inability to make a decision almost always occur. Karyn Greenstreet of Self-Employed Success calls this an Unafforadability Belief where “some customers believe, perhaps incorrectly, that if the price is not shown, then it must be too high.”
Why You Should Post Pricing:
Reason No. 01: You can skip the awkward pricing conversation
There’s nothing worse than being all excited about buying something only to find out in the end that you can’t afford it. Being upfront and transparent with your clients about your pricing helps to avoid that awkward pricing conversation.
Reason No. 02: You can save yourself and your potential client a whole lot of time
This goes along with the above reason, but putting your prices out front where potential clients and customers can see them is a great way to weed out those that can’t afford to work with you. I’d rather sit down and visit with 3 clients that already know what my costs are to create a website than with 6 clients, 3 of which have no idea and later find out they can’t afford my services. Like Pia Silva says, “Pricing transparency immediately weeds out bargain shoppers, which are people I’m not interested in working with.” (Source: Forbes)
Reason No. 03: It attracts the customers you want
Displaying your prices on your website helps attract the kind of customers and clients that you want. You may think that your potential audience will go to a cheaper competitor, but often that’s not the case.By displaying your prices, you’re making it clear who you’re targeting.
BONUS: Reason No. 04: Budgeting
If people feel like they can’t afford you, but want to work with you, they now have a price-point from which they can start savings towards working with you.
A few additional tips:
How to Show Your Prices on Your Website
If you can display your actual prices, great! But if not, it’s a good idea to show your average prices. Don’t be tempted to say something like “packages start at $2500” or listing your entire price sheet. Instead, say something along the lines of “the average website costs $1500.” You see, when you list the “starting at” price your potential clients will set that number in their mind. When they see what the cost really ends up costing them, anything above the “starting at” price will sound expensive. It’s not what they were expecting.
Where to Put Your ‘Average’ Price on Your Website
Think about the experience that you want for your potential clients when they land on your website. Do you want them to see your prices first? No. That makes it all about the price and not the experience. Help the client see the value and the experience prior to seeing the price. (Source)
In the end, it’s all about earning their trust. By being transparent and up front with your prices, even if it’s a ballpark figure or estimate, you help answer their questions. That leads to trust and that leads to new business.