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Climbing Out of the Lowest-Price Trap

Posted By Bryan Eisenberg On November 19, 2004 @ 2:23 pm In ROI Marketing | No Comments

Price is not king. Not on the Internet, not anywhere.

Now don’t misunderstand. Price is a critical attribute of any competitive product. But let’s not place it on too lofty a throne.

No one wants to pay more than she must to buy what she wants. Who doesn’t seek good value? But a fair price and a good value [1] are entirely different from the lowest price.

Among e-tailers, the argument usually goes something like this: “My visitors are just a few clicks away from my competitor. If they see the competition has a lower price, I lose the sale.”

That’s certainly true. A portion of your visitors will always scavenge for the lowest price — but only a portion.

Playing the lowest-price game is a losing battle for many online retailers. The casualties are profit margin and, often, sanity. Businesses scramble to meet low-price demands and chase customers who pimp their loyalty for a nickel in savings. Playing the lowest-price game just isn’t any fun.

If you want to elevate your site’s offerings above the messy low-price battlefield, there is a way. Start by letting go of the coupon-clipping, penny-pinching customers, and end by delivering more than visitors expect.

Continue reading my column at ClickZ… [2]

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URL to article: http://www.grokdotcom.com/2004/11/19/climbing-out-of-the-lowest-price-trap/

URLs in this post:

[1] fair price and a good value: http://www.clickz.com/experts/crm/traffic/article.php/2192801

[2] Continue reading my column at ClickZ… : http://www.clickz.com/showPage.html?page=3437301

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