We live in a world where consumers can easily access product availability, details, and options — all with the touch of a button. Still, some companies aren’t immediately upfront and transparent with their pricing. For those companies, this can often be seen as a major red flag when it comes to customer traction and establishing long-term relationships.
Being fully transparent with pricing varies based on the nature of your business. Pricing can be sale-specific, set, or can fluctuate, as explained below:
- Sale Specific: If a company specializes in custom, one-of-a-kind products or services (such as artworks), their prices will vary between clients as the cost will be based on the scope of the job.
- Set Price: If a price is dictated by the wholesaler, displaying a sale price for a reseller is easy as it’s calculated with the markup.
- Market: For some businesses, the sale or purchase price can fluctuate on a regular basis. An example of this might be specialized places to sell silver flatware, gold and silver jewellery, or bullion. In this example, the purchase price for the buyer will change based on global markets.
Even with these varying hurdles, the ability to advertise current pricing is still viable. For custom work, offering a ballpark fee or a price range will suffice. If your prices fluctuate based on the market, you can be transparent with companies by displaying up-to-date information.
So why is price transparency so important?
The Key Benefits of Displaying Your Pricing
Avoid Unjust Pricing Beliefs: Often, when a purchase price or a sale price is not clearly defined, customers assume that the price is out of their price range. If the customer is looking to sell, such as with gold and silver jewellery, real-time prices can also shape more realistic expectations.
Gain Trust: By clearly defining prices or a price range, customers assume you’ll be transparent in other areas of your business.
Provide Customers with Options for Forward Panning: If your prices are clearly defined on a website (or in a storefront), clients can budget, save, and plan ahead.
Offer Price Comparisons: By showing different prices, a business is ‘throwing its hat in the ring’ for customers who like to compare price points.
Save Time: If price points are not clearly showcased, some shoppers may not have the luxury to connect and find out how much a service or product is. Furthermore, from a business perspective, responding to individual price queries and trying to convince a client that your fees are reasonable could be considered a waste of company time and resources.
Consider Pricing as a Branding Tool: Take grocery stores, for example. Some grocery stores promote themselves as affordable, low-budget options as part of their marketing, whereas others use pricing as an element in establishing a boutique, exclusive, gourmet feel.
Price Transparency Is a Wise Brand Decision
Ultimately, putting prices in the public eye is a personal decision. For businesses that don’t display their prices, consider letting customers know why. Better still, try displaying prices for a limited time to see if there’s an uptick in sales or inquiries and if your team has an easier time selling wares.
Tracking effectiveness is key in every area of business. Develop a robust pricing strategy and find out what works best for you and your brand.