When in the midst of redesigning our website, we had a big internal debate: do we publish our rates online?
I don’t have the answer; however, I’d like to take you through the thinking behind whether to publish your pricing on your website.
The 'hell no' stance
I have been mentored to believe publishing prices is a big 'no, no'. The reasons against publishing pricing are straightforward and can be attributed to a few clear concerns.
Sticker shock: There’s a perceived risk that you may scare customers away. They will see the price without understanding your value proposition, which may drive them to seek cheaper solutions.
If your customers can’t identify your value proposition from your front door, you might have a branding problem. Life’s too short to build your business by selling to price-sensitive, bottom-feeding customers.
Educating the competition: The other reason to avoid publishing prices is you can make it too easy for your competition. They can use that intel against you.
This is a tricky issue, especially for industries that sell through a bidding process. Publishing your pricing may create an opening for the competition to slightly undercut your prices in an RFP (request for proposal) or tender.
Avoid overestimates and assumptions
That said, we can also overestimate the competition. As the old saying goes, “mimicry is the highest form of flattery.”
If the competition is copying your services and pricing models then your company is defining the brand category and industry expectations.
Price is a segue: My number one reason for not publishing the price up until now is it is a great call to action.
When someone is ready to discover the price, it’s time for a conversation. They are receptive to a sales call, and you can accelerate the sales process by getting the customer on the phone.
Positioned to negotiate: The other major sticking point for publishing price, which really concerns me, is it sets up the customer to negotiate.
For example, if a customer sees a service that costs $10,000, they might say, “We love it, but we’ll only pay $8,000.”
Engaging in a price negotiation at the start of a sales cycle is dangerous. It’s not how I want to start a relationship!
I don’t have the experience to know if this situation is real, but it does give me cause for concern.
The 'hell yes' stance
The internet has changed expectations. We live in an information-rich market, and if customers want the price, they should be given it.
Price is everywhere. It isn’t hard to find anymore. Car companies first conditioned us to discover the price. You can configure any car, and their websites will give you the exact price.
This practice has extended well beyond the automotive industry. Even if the price isn’t published on a company’s website, you can usually get it from an existing customer on social media.
Ask the question on Twitter or Facebook, and if the company is large enough, or prominent enough, you’ll get an answer.
Published prices save time: Let your customers determine if your services are the right fit. My company’s goal is to achieve the two-call close — and if I could make it a one-call close, that's even better.
A primary way I achieve this is through making my website sell as well as my best sales person. I think any information I would give in a sales call should be on the website.
This helps me in two ways. First, it eliminates people who aren’t a good fit, which saves us both time. Second, it positions the services by helping customers understand where the services fit in the spectrum of marketing options. Price is a positioning tool.
The customer wants pricing: This is the number one reason I publish prices. If the customer wants that information, then give it to them. It’s a key aspect of their decision-making process.
If it helps them make better buying decisions faster, publishing your rates proudly on your website makes sense.
Publishing your prices on your website doesn’t fulfil your value proposition or make your brand stickier, but it can whet your customers’ appetite to buy faster.
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