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How to Stay Out of the Perpetual Price Slashing Trap – Part 2

Last Updated on Mar 25, 2011 by Jeff Lew

In Part 1, we talked about how price-slashing is commonplace in the eCommerce industry and how it doesn’t really pay to play this game with your competition. Consumers are looking for brands they can trust in addition to low prices and the perfect balance of the two will breed more success.

How can you acquire more sales without seriously discounting prices close to your competitors?

Here is one thing you must realize: Consumers buy a brand more than a product.

Yes, you will come across the minute few who will order from any site, even those sites void of a valid security certificate, but the majority of consumers need to feel safe when ordering from you.

Building Trust and an Emotional Connection

If you were to walk into a physical store, what would you experience? …people’s faces, friendly customer service, a physical address, the touch of a product, etc. Though it is difficult to supply consumers with these elements with an online store, you can still do your best with what you have. Your online visitor will arrive to your site with a wall of skepticism. You only have a few seconds to ease their worries and establish a connection.

It should be your goal to provide an emotional connection with your visitor the moment they land on your site. This includes an unveiling of your personal information (phone number, address, etc.) and possibly live chat and a picture of the team or person working behind the scenes.

In the photographs of your products, include actual people using or benefiting from your products. Add testimonials and allow others to review your products. All of these elements showcase to your visitor that you are a living, breathing store and you are not going to take their money and run.

Lastly, your website should look professional. If at all possible, hire an expert to create the look and feel of an organization who is concerned with quality and professionalism.

You can add all of the elements of a successful site, but if your website looks like your ten year old nephew designed it, you will never be profitable.

Discounting – How much is TOO much?

As stated before, price-slashing is a never-ending battle. Not only will you be cutting into your profits, but you will always find someone else who prices below you.

Instead of joining the pricing game, try some of these techniques to make your products look unique:

Bundle Products – Bundling products can create unique combinations for your customers and it will allow you to set whatever price you want. You can bundle based on any category such as color, seasonal items or accessories. For example, if you sell wedding favors and a hundred other stores are selling the same wedding favor, you can come up with a clever way to sell them such as a “summer wedding favor combination”.

Be Unique – 90% of eCommerce store owners use the default photos and descriptions provided by suppliers. Make your product stand out and look unique by taking a different shot and writing unique descriptions and product names. Showcase these items as “best sellers” and if they start to sell, you can continue to do the same for the rest of your products.

Trust and uniqueness trumps price every time! Give your customers a reason to stay on your website and you will enjoy increased profits for the long-term.

One thought on “How to Stay Out of the Perpetual Price Slashing Trap – Part 2

  1. Pingback: How to Stay Out of the Perpetual Price Slashing Trap – Part 1

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