In this post, I’ll show you some of the techniques you can use to enable your pricing to be easy to compare to competitors although, you should bear in mind, many customers do not buy the lowest cost provider (and this is especially true online where purchase risk is greater).
Commodity products tend to be easily price-compared.
PRICE COMPARISON SERVICES ON THE INTERNET.
A price comparison service (often referred to as a ShopBot (or shopping bot)) allows individuals to compare prices for specific products. Shopping bots do not sell the goods, instead they connect a buyer to a seller, via a commercial relationship the bot establishes with the retailer. If the retailer is selected by the customer, the retailer may incur a pay-per-click charge for the shopbot listing or be invoiced for a small percentage of whatever is sold (depending on how the shopbot website is set up).
Some of the more sizeable shopbot websites vet companies before including them to ensure legitimacy of store before a customer transacts.
PER UNIT PRICING.
One way to make prices easy to compare is to charge products at a unit price. With unit pricing, the price is stated in some common unit of measurement, such as the price per kilo or price per dozen. It is very common in supermarkets, for example.
PRICE MATCHING COMPETITORS.
This can be done by adopting a Recommended Retail Price (RRP), matching an advertised rate for a competitive product, or by charging the same as competitors for identical products.
If you are going to be cheaper than competitors because you need the business model to support it, say so. This technique is used effectively by many large retailers (for example, Bunnings which advertises that if a competitor has a cheaper price they will beat it by 10%).
You can add transparency to pricing by publishing price lists. Everyone, including your competitors, know what your asking price is. By default, your competitors may begin to price match you. (Depending on your circumstances, you may want to disguise your published pricing, making it harder to compare prices.)
READ: More about pricing strategy.