Question

Topic: Strategy

Pricing: To Promote Or Not

Posted by Anonymous on 9/14/2009 at 8:03 AM ET 500 Points
This discussion stems from another posting that I currently have running for review of our recently launched new website: "Please Critique - New Website Launched." Please go there to see previous discussion.

We are looking for opinion - and strategic ideas - on the promotion (or not) of pricing on a website for a business service. Specifically, online transcription services.

Industry: There is no standardized pricing measure (or method) in the industry and many companies use some fairly convoluted methods to charge (add-ons). They promote super-low prices on their websites to catch their audience, then add on from there (for any number of variables).

Company:
Our company delivers premium transcription services for doctors, companies and executives, media and academia. We emphasize speed and personalized service (truly 24/7). We feature flat-rate pricing, which includes all of the aforementioned add-ons. Our ACTUAL price is higher than those promoted by others, but it includes everything, making it often times less than our competition in the end. From a shear service perspective, we compete extremely well vis a vis our competition.

To date, we have always left pricing to be discussed via telephone (avoiding the commoditization of our service) and tend to attract discerning customers this way, albeit at the expense, no doubt, of some who may want pricing info as a prequalifier. You can see what we say about pricing here: https://www.samedaytranscriptions.com

I am looking for opinions on this: list price or not? Either way, what would your strategy be?

Thank you (and please let me know what you think of our new site).
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RESPONSES

  • Posted by NovaHammer on 9/14/2009 at 9:44 AM Member
    Hello again,
    any thought or testing done to consider multiple tier pricing, x price for 48 hour or two business day service vs higher price for (24) same day service? Has your name painted you into a corner perhaps in the future?


    I can see you eventually being snowed under with this claim (sometimes prosperity can be a terrible thing) although you are attempting to hire more staff.
    Same day service could become a curse if you grow too fast.

  • Posted by Jay Hamilton-Roth on 9/14/2009 at 11:01 AM Accepted
    If you have a commodity service/product, then clearly stated pricing makes it easier to compare apples-to-apples.

    If not and if you have the historical data, create a price range for services. That will psychologically allow the prospect to anchor the price in their mind (rather than assuming the best/worst-case). You may also explain the range of pricing differences, to educate people produce their recordings differently to save $.

    By not having any pricing listed, you create friction in the minds of some prospects. If these prospects are likely to be your better customers, it can lose you customers.

    You may also decide to compare yourself to your competition (or have a 3rd party do it) by taking the same recording and having it transcribed. Compared the cost/accuracy/speed of the result and publish the results in a white paper of your own.
  • Posted on 9/14/2009 at 5:12 PM Accepted
    I would resist showing pricing on your site. Your prices are higher, for good reason, but that will be lost on a nondiscerning web surfer. My strategy would be to get the phones to ring, not to try and beat my low-priced competitors at their own game.

    The first thing I would do is segment the audience for these services and ensure there is (a) a sizable audience willing to pay premium rates and (b) I can get enough share to sustain a business. If so, I would then focus on a website that articulates a quality, service-oriented proposition that is also directly anti-competitive against the low-price players. That way you have ensured the calls you get will be better qualified – why waste your sales peoples'/call agents' time?

    Then keep populating the site with fresh content about how you SOLVE CUSTOMER’s PROBLEMS, and get case studies and references on the site as fast as possible. Then SEO and SEM the heck out of it.

    You CAN talk about pricing, but in the abstract. Talk about how services are bundled into a simple easy-to-understand and budget for fee, with no last-minute add-ons or surprises, etc. etc.

    At the end of the day, everyone buys on price. You, however, want those customers who don’t make that part of the early stages of the shopping process.
  • Posted by Chris Blackman on 9/14/2009 at 7:05 PM Member
    I was one of the people who raised this issue on the other thread.

    I think it's important to set a pricing expectation, and to create a perception of your price position.

    You don't have to expose your entire price list! You just need to talk about what customers can expect. Absence of any pricing information leaves the matter as "the elephant in the room".

    A simple assurance that your service, quality and price represent the very best value to anyone looking for a professional transcription service should suffice.

  • Posted by mgoodman on 9/14/2009 at 8:13 PM Accepted
    My gut reaction is that you're doing exactly the right thing. Save the pricing discussion for people who understand what you offer and follow up by initiating a call or other contact.

    The one thing you might do on the website is address the pricing issue head-on -- without a price list -- explaining that each job is quoted based on the client's needs, etc.

    (For some reason I can't access your site. Not sure what the problem is. Maybe your server is down?)
  • Posted by Gary Bloomer on 9/14/2009 at 8:23 PM Accepted
    Dear Robert,

    Test it. Duplicate your whole site and run two ads for each landing page, one version with prices, one without, and see what comes out in the wash.

    There are pros and cons to BOTH opinions ( show prices vs don't show prices). So the best thing to do is test it.

    I hope this helps. And by the way, your site has a problem. I got the following error message "Firefox has detected that the server is redirecting the request for this address in a way that will never complete."

    What this means I have no clue, but your site's down.

    Gary Bloomer
    Wilmington, DE, USA
  • Posted by cookmarketing@gmail. on 9/15/2009 at 10:04 AM Member
    Just remember, your entry costing will be your top dollar for a long time.
  • Posted by Red Plume on 9/16/2009 at 12:51 PM Accepted
    Hi, VIW,

    Wow, lots of thoughts from both sides. My comment is really related to the writing under the Pricing section of your website. If you are going to not include prices, cut through that big paragraph and stick with the best facts, like your first sentence. If there is already concern in this area, it's best to not bog the reader down in copy. It's a great opportunity to say clearly, "Hey, we charge flat rates, won't gouge you, we're worth it so call us to work out a quote for you." All the other stuff is important, too - poor audio, many speakers, etc - but may work better in a separate section, like Service, or a new section, like Quality.

    One last thing – consider switching out “Fast” to “Turnaround.” It's a consistency thing with your titles, nouns vs. adjectives. I know this is not what you were asking about but something to noodle. Another option is to change all of them to adjectives, though may expand to more than one-word titles.
    Why Choose Same Day Transcriptions?
    For our: Price, Accuracy, Turnaround, Service and Experience
    Because we are: Best Value, Accurate, Fast, Customer Focused, Experienced

    Best of luck,
    KMH
  • Posted by telemoxie on 9/16/2009 at 4:36 PM Accepted
    I personally do not like the idea of posting pricing on the website, but I am not an expert on that topic.

    I would like to suggest an approach which I used for years. You could have a standard price for a trial project. This gives you each a way to get to know the other before either of you makes a major commitment.

    A few years ago, I operated a one-man telemarketing firm, and I offered a 10 hour pilot program for a fixed price so that people could get to know me. In a similar way, you could post a special discounted rate for a small first project. This gives other people a way to test drive your services with minimal commitment, and it helps you avoid spending time on people who just can't seem to find their checkbook.
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