Can My Low Prices Be Driving Customers Away?

Q: I’ve updated and adjusted my main page since you last looked it over. Now people are saying they won’t buy because my prices are too low.  I don’t think it’s worth too much more. What should I do?

A: Hey, you didn’t put your name on this question, so I’m not sure who wrote this. However, I do want to make sure that you didn’t think that I told you to bring your prices down. I rarely give that advice to people because it’s tough to get ahead by competing on low prices alone (which I’ll talk about in a second).

But let’s get to your problem. If you think your price might be the problem, this is what you need to do:

1. Raise the price (but don’t change anything else – you just want to know if price is affecting your sales).
2. Drive traffic to your site.
3. Track the results.

If you’d like to learn more about testing and tracking like this, be sure to grab a transcript copy of this free interview with John Reese & Armand Morin on the subject.

Many people are tempted to make their price their “USP” (Unique Selling Position) and it’s hard to make money that way. Companies like Walmart and Amazon can compete on price, but as a small business owner, you need to create something more unique about yourself to draw in loyal, repeat customers.

And trust me – Customers that buy for other reasons than price are much more pleasurable to deal with than bargain hunters. Don’t underestimate people and what they will pay based on the perceived quality of your products; your service; the information you provide and just because they plain old like you (for relationship-building ideas, check out the excerpts from my Internet Marketing Sweetie course).