How often have you gone to a company’s website to learn about a business product and been unable to find their pricing? If you’re anything like me, your answer is “too many times to count”. In those situations, if you’re truly interested in the product, you then need to go through the routine of requesting contact from the company’s sales team, exchanging a few emails with the sales rep before setting up a call, and only then – if you’re lucky! – getting a peek at their rate card.
Why is this process so difficult? The obvious answers are that many companies want to be able to customize their pricing to the client (and “public” pricing would make that hard to do), and/or keep their rates hidden from competitors.
However, in a recent blog on TheSalesLion.com, author and marketing expert Marcus Sheridan explained it differently. According to Sheridan, there are two types of companies in the world: “those that are embarrassed of their pricing and those that are proud of their pricing”.
To Sheridan, pricing is primarily related to value and trust, and companies that are proud of their pricing are able to demonstrate/engender both by embracing what drove them to price products a certain way in the first place. To illustrate his point, he shares an excellent example from the high-end bag brand TOM BIHN that actually spells out on their website “Why TOM BIHN bags are so expensive” and “Why TOM BIHN bags are so cheap”.
Is your company upfront with your pricing, or do you play it a bit closer to the vest? Either way, think about what’s driven your business to go that route. Would being more transparent with the philosophy behind your pricing be beneficial to your customers, and – potentially – help you attract more of them?
If your answer is “yes”, take a look at the TOM BIHN approach, and apply it to your products. You may find that being honest and forthright with your company’s practices and strategies will earn you more business than you thought.