Will Online Price Comparisons Build or Bust Your Brand?
I must confess a personal bias…in my mind, it’s never about the price. The only time people buy on price is if they perceive no difference between their choices. If they perceive no difference between you and the other guy – then the lowest price wins. That’s just econ-101. I’m not some kind of economics schollar, but I do remember the Latin phrase that kept coming up over and over "Ceteris Peribus" which means everything remaining the same. Yet, so many businesses FORGET this little disclaimer – "remains the same."
By Definition No One and No Business is THE SAME
The world is complicated and while so many things look the same, they really are not. Think about it. If each of us is a unique individual (think DNA and fingerprints) and a combination of unique individuals – say your company – cannot be anything other than UNIQUE. No other organization can have that same combination of people and can provide the same experience to their customers.
Will You Lose Customers to Online Price Comparisons?
Online price comparisons are nothing new. Progressive insurance has been doing it for a long time. The theory is that giving you price comparisons will only increase your loyalty to them. But technology is getting such that soon you will see many more companies offering this feature.
So I want to know:
- What would be your reaction if, as you were checking out, you received options for similar products at different prices?
- How likely would you be to abandon your original choice after you’ve made the decision to click "buy"
Okay, so we have compared prices and established a baseline of what the product or service should cost. What’s next? Are we going to base our entire purchase decision solely on price? When do you establish that purchasing from one company over another has value beyond price, such as service, or delivery such as next day or free delivery, or ease of returns/refunds? You are right, No business is the same. I can sell you the same office products that come from any of the “big box” retailers and I can even sell for the same price. The difference comes from the people you buy from and the service you receive. It is still true, people buy from people. Price may be the first concern but in my opinion service gives you value that is difficult to place a price on. I’m guilty of buying on price alone but I’ve learned that true value goes beyond price.
Thanks for a great post!
Hi Don –
I’ve heard it said that when a company gives comparisons of competitive prices, that it actually builds loyalty for its brand. Maybe it’s at that moment that we have the realization that it is about more than price.
Your question of when you realize that it’s about more than the price reminds me of when we were kids and played “eenie-meenie-miney-moe” (sp?) and then as soon as you saw it was going to point to something other than your choice – you knew you had a preference.
Funny how deep you have to dig to know that it ‘ain’t’ about the money.