One of the most critical aspects of a successful website and indeed any business as a whole is the correct pricing strategy. Set prices too high and you miss valuable sales, however that is countered by setting prices too low leading to lost revenue and potentially insufficient margins to maintain and grow your company. The majority of companies that engage in what is commonly termed “the race to the bottom” fail because they compete on PRICE trying to outbid their competitors by simply cutting the sell price to a point that no-one succeeds.
The disadvantage one may say of a website, is that a good quality website will always display the price of a product or service. Global studies have found that >95% of prospective customers visiting a website a statement “Enquire for Price” or similar ill not continue and will select a site where the price is clearly detailed along with the service or product description, allowing them to make an informed decision on the spot. This sets the tone and pricing is therefore an essential part of your website structure.
When determining your price there are many factors to consider, obviously true cost of the product or service rendered being the most critical starting point. Add to that a reasonable margin that allows you to not only cover your costs but also provides a return that leads to profitability and growth.
Another critical aspect associated with the price is a clear Product/Service Description i.e. a detailed review on the Product Page that accurately describes the main features and highlight the unique offering you provide that helps to distinguish your product/service from others i.e. your VALUE PROPOSITION. The Value proposition is as important as the price displayed given both drive a prospective clients decision to place an order or continue to search.
Value propositions may be as simple as your location, or as complex as the materials or quality of service provided, support and backup or any number of what you perceive as unique or contributor factors a client should consider.
Price and the Value proposition combined are essential to build the right Product Pages driving further business to your website.
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