Does your business price match? Let’s put ourselves in our consumers’ shoes. Have you ever purchased something from a popular store only to find out that the exact same item at the exact same time costs much less in another store? I understand how cheated you must have felt. I assure you that you’re not alone. The use of price to attract customers is a business strategy that has proven to be successful over the years.
Consumers have always been very sensitive to prices and businesses use the power of price manipulation to compete in the market since it’s a common assumption that consumers like you and I are more likely to go after lower prices.
Price-matching is a policy used by businesses that guarantees their customers that if they can find a better price elsewhere prior to purchase, they will match that price. Sounds great don’t you think? Well, it may seem pretty easy and straightforward but trust me it isn’t.
For instance, if you want to purchase a specific brand of bike for $500 at a store that offers price-match guarantee, and at the same time you discover that the exact same bike (exact in every way possible) goes for $450 in another store, your seller will more than likely match that price. However, small businesses and startups can’t simply compete with large retailers like Walmart and Amazon because they thrive on low prices and are even willing to make a loss. Customers flock to these stores because they know they can purchase products at the lowest prices possible.
Here are reasons why you should offer price matching to your customers.
It’s A Simple Customer Magnet:
Price-matching is a way to reassure your customers that you probably offer the best prices around. If your company is willing to match a better price, it means that you already have low prices and consumers definitely love low prices.
It Generates Customer Loyalty:
If one of your customers ask you to match your competitor’s price rather than running to another store, it’s a clear indication that this customer is loyal. Being able to match that price creates trust between you and your customers.
Keep Your Business Competitive:
Price matching is a critical approach to increasing customer retention. It also demonstrates your ability to remain competitive.
Align Marketing with Your Customers’ Desires:
Customers use the internet regularly to compare prices to find the best deal. Before eventually coming to your store, your customers may have searched online stores for similar products to compare prices. Using a price-match system helps you to keep up with the current market prices.
Even though price-matching definitely has its disadvantages for small local businesses, it certainly is a valuable business strategy. More often than not, you’re going to benefit from offering it to your customers.
This article was written by Emmanuel Ozigi, a biochemist in the making from Nigeria. In my spare time, I’m a science, health, and fitness blogger. I also specialize in graphic design and photo editing. I also have this insatiable hunger for information and the desire to learn new things. Visit my blog at http://sciencehealth24.com.