Communicating price

After you set the price of your product or service you have to communicate it in an effective way that supports your overall strategy. Here’s how. When buying products and services customers ask themselves a simple question. Am I getting my money’s worth? You need to help them answer this question or they will do it by themselves. And they may come to the wrong conclusions. When a customer first sees the price that’s a critical time to remind them of the value they’re getting for their money. Be sure to tell them about any discounts that might apply, or any other terms and conditions, such as shipping and handling charges. You want customers to have a complete and clear picture of your pricing. Hey, if they’re confused about something they may look elsewhere. Now, timing is critical. If price is the most important factor then you must communicate price very early in the buying process. If it’s not the most important factor then you want to communicate it later, during the phase where customers are evaluating their alternatives. The key is to make sure they understand the value they get and all the features of the product or service before they get the price. Where you communicate price depends on the point of sale and where people go for information about your products. If customers do their research online well, you’ll need to have prices on a website. Either yours or a distributor’s. Think about the customer experience, and where those occur physically. Then select a location for disclosing the price that helps the customer make the connection between price and value.