This is a dilemma that has relevance to many service based businesses, including my own and some of my existing clients. It was mentioned recently in an email newsletter I received, and as I am in the middle of rebranding my own site just now I thought I would look into the pros and cons in more detail.
This is a decision that many businesses find hard to make, especially when put on the spot by a web designer such as myself. Having spent some time digging around the internet for forum threads and articles on the subject I have discovered just how much opinions on this vary from person to person. While I can’t give you the definitive answer, hopefully I will give you some useful points to consider.
Show me the money…
Those in favour of displaying prices make some valid points well worth bearing in mind. It can be used as a method of pre-qualifying potential customers before they even contact you, which in some cases may save you (and the customer) a lot of wasted time. In my line of work where I will spend a number of hours putting together a proposal document or drafting up some designs, knowing that the person at the other end is aware of the potential price tag eliminates any nasty surprise when they receive the quote. A good analogy would be, if you’ve ever sold your car privately you will know how frustrating it can be dealing with tyre kickers!
Another way of looking at it is that it can be an effective form of bait. For example a ‘prices starting at’ type statement when used in as honest a way as possible, can lead a visitor to pick up the phone or fill in your contact form if it fits within their budget. Once the statement has provided the first communication it falls down to you to explain your pricing structure at the appropriate time. It should be stressed though that it is not worth stating ‘prices starting at £200’ just to grab attention knowing full well the price would be closer to £1000, this will only succeed in losing a sale and gaining a bad reputation.
Keep it to yourself…
The nature of the beast that is a service based business is the flexibility in which jobs are quoted for. I for example may be able to design, build and launch a website with tens of pages and fancy features in a few days, whereas another three page site could take longer depending on the specifics of what is required! If I were to say ‘buy a website for £300’ on my site I would be nailing my own coffin shut. With no two jobs being the same it stands to reason that no two prices will be either. Rather than be accused of misleading people, you retain the ability to price per job at a rate suitable to the specifics involved.
The reverse of one of the statements for showing prices can also be seen as a benefit to some, in that by not having prices shown you may in fact receive more requests for information. People who are eager to find a good deal will have to get in touch to find out where you sit against your competitors. If your business does not require lengthy procedures like writing proposals, this really can work in your favour.
A point to note…
It was more than apparent that many people participating in online discussions around this topic would, as customers, not make any contact with a company without prices shown as it must mean they are expensive! I can see the logic in this one although I don’t whole heartedly agree personally, it would depend on the type of service I was looking for on how I would form my opinions.
In summary…
There really is no right or wrong answer to this dilemma; as there are numerous factors that may have an impact on the overall result. What is important is that you give the decision the attention it deserves, and analyse the response to any changes in strategy. Put yourself in the position of a potential customer visiting your site for the first time, how the site looks and feels, the quality of the content and information available and give that all important ‘call to action’. If nothing else this exercise gives you an opportunity to step back and evaluate how well your site represents your business, and identify any areas that could be polished up a bit – but we all do that regularly anyway, don’t we?
I wrote an article on this some time ago and I always include my prices but state that they are general figures and each site is different depending on individual needs. It is possible to give loose prices based on the different types of sites clients will need.
In addition I favour including prices as I don’t want clients thinking that if they pass their details to me they’ll get bombarded with sales calls, emails etc. For this reason I always avoid businesses that do not give out prices.
Mike – I have to admit sometimes I also get frustrated when a site doesn’t at least give some steer on pricing. This then means you have to use a contact form or something which slows the whole buying process down. I think what’s important is to look at your competitors sites and if they are displaying prices then I would say you really have to do the same.
Hi Gordon (and Mike and Barry above). This is a question that’s been on my mind as well recently, particularly in relation to a new service we’re offering, proofreading. So far I have no rates on my site – particularly in transcription, we have a big problem with other workers undercutting as soon as they get to find out your rates, so I tend to be a bit circumspect. Mike I like your idea and Barry that’s interesting that a complete lack of prices on a site frustrates you. I’ll definitely give it more consideration. Thanks for posting, Gordon.
I am inclined to think that it is a good idea to give a general idea of prices on my website. I would qualify the information by saying that I would consider each client’s individual requirements before giving a definite quotation.
I’m struggling with this myself but am erring on the side of not listing prices. Our sell is a bit consultative — we write all your newsletter content in your own voice, which takes some doing — so I really need and want them to engage with me on the phone. The material I do publish about “Why ENN” or “why trust your message to a professional writer” should be enough to help them understand if I’m the kind of person they’re interested in working with. I may give a ballpark figure or just indicate that creating content for a basic email newsletter is not expensive, but price list? No.