In the competitive B2B e-commerce landscape, price plays a key role in the purchasing process. However, many professionals are reluctant to clearly display their prices, preferring to keep them "confidential". Yet, according to a recent study, no less than 87% of B2B buyers look for product prices before contacting a supplier. This is an important statistic, which shows us that price transparency is a crucial issue for manufacturers and distributors who market their products online, particularly on B2B marketplaces. In fact, as sellers, by openly displaying your prices, you can acquire new customers and win their loyalty by being transparent and honest.
In this article, we'll explore why there is reluctance to communicate freely on pricing, and also demonstrate why pricing transparency actually plays a major role in winning over B2B customers.
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Table of Contents
- I. Price: A key competitive criterion on B2B marketplaces
- II. Misconceptions that fuel reluctance to display prices
- III. Why B2B buyers need to know your prices
- IV. Price transparency: You have everything to gain!
- V. Seven ways to build your price list
- VI. Optimize your price displays on your online product stand
I. Price: A key competitive criterion on B2B marketplaces
According to a recent UPS study, 61% of professional buyers consider price to be the most important criterion when selecting an online supplier. In a highly competitive environment, displaying prices can be a competitive advantage. Customers look for information online and expect to find prices displayed. Failing to provide them creates a hostile shopping experience, and may drive them toward competitors.
Although some companies have legitimate reasons for not revealing prices online, this runs counter to customers' needs. Online B2B transactions often involve large sums of money, and purchasing decisions have a significant impact. Price transparency is essential to reassure customers and facilitate their choices.
Companies that hide costs are perceived as evasive and unreliable. Don't underestimate the importance of price as a competitive criterion. Make sure you offer a transparent, user-friendly shopping experience that equates to good customer service by providing as much information as possible, including prices.
II. Misconceptions that fuel reluctance to display prices
Salespeople cite a variety of reasons for their propensity to keep rates confidential. However, the misconceptions that fuel this reluctance need to be challenged.
The fear that high prices will deter prospects is understandable, but B2B buyers also make their purchasing decisions by considering criteria such as added value, quality of service and company reputation.
Arguing that each project is unique, which makes it difficult to quote a precise price, is debatable. It is possible to provide price ranges or estimates based on previous similar projects to help customers assess whether your offer matches their budget and needs.
Some fear they could lose margins by revealing prices, but hiding them does not guarantee a sustainable competitive advantage. B2B buyers have access to a wealth of information online and can compare offers. By openly displaying your prices, you show transparency and confidence in your products, which can set you apart from the competition.
Some professionals believe that price transparency limits negotiation opportunities. However, displaying prices doesn't mean there's no room for negotiation. On the contrary, it fosters a positive atmosphere for your customers that encourages quality negotiations based on mutual benefits.
III. Why B2B buyers need to know your prices
First of all, the price of a product often determines its category. By knowing prices, buyers can quickly identify the products that match their budget and expectations, enabling them to effectively filter the available options.
What's more, price plays a central role in product comparison. B2B buyers are constantly on the lookout for the best value for their budget. They want to find quality products at competitive prices. By indicating prices, manufacturers and distributors offer buyers the possibility of easily comparing the different offers on the market, thus facilitating their decision-making.
Secondly, displaying prices meets the expectations of B2B buyers, who are often in a hurry and, as professionals, need quick access to relevant information.
Finally, prices are a crucial element in planning. Buyers need to assess the profitability of their investments, budget their expenditure and forecast future costs. With access to pricing information, they can develop effective procurement strategies.
IV. Price transparency: You have everything to gain!
Transparent pricing has many advantages. By adopting an open communication approach to pricing, you can better target buyers, providing them with the information they need to make decisions about a project. This maximizes your chances of selling to customers who are genuinely interested in what you have to offer.
What's more, B2B buyers can quickly assess the value of your offer by comparing your rates with those of your competitors. This strengthens your company's credibility and brand image, and enables you to stand out from the competition by offering competitive prices.
By displaying your prices in a straightforward way, you can also attract new customers. Transparency creates a sense of trust among potential buyers, who feel reassured in the knowledge that they can obtain accurate information on your product costs. What's more, it helps you retain your existing customers by reinforcing the credibility of your business relationships.
V. Seven ways to build your price list
Drawing up a price list can be complex, but it is essential if you are to communicate your prices accurately. Here are a few options, depending on your objectives:
- Adapt your prices to the competition
It is advisable to analyze your competitors’ prices and decide whether you wish to align yourself with their prices or set an optimal price difference to set yourself apart. The use of predictive pricing analysis techniques can help you decide.
- Strategic positioning
One option is to position yourself with the highest prices, highlighting the quality and added value of your products, or the lowest prices, attracting a price-sensitive clientele.
- Analyze demand
It's worth looking at the elasticity of demand for your products, and adjusting your prices accordingly. Lower prices can stimulate demand, while higher prices can reinforce the perception of quality.
- Set prices in line with costs and desired margins
It's important to assess your production costs and set your prices so as to reach your profitability targets.
- Penetration pricing
By offering attractive prices, you can enter the market quickly and win market share.
- Implement a skimming pricing strategy
High prices position products as top-of-the-range, attracting customers willing to pay premium prices.
- Build your prices around your product range
The price of a product influences not only its own sales, but also those of other products in the range, and can be used strategically to facilitate the sale of complementary products or accessories.
VI. Optimize your price displays on your online product stand
When presenting your products online, it's essential to highlight your prices and provide all relevant information to enable buyers to position themselves. Here are some important elements to include:
- Basic product pricing: Clearly display the price of each product so that buyers can assess their budget and make a decision accordingly.
- Price lists: If you offer customized pricing based on purchase volumes or other specific criteria, present this pricing to attract qualified leads.
- Flexible pricing policy: If your pricing strategy is flexible and based on negotiations with customers, provide a guide explaining how buyers can initiate discussions.
- Promotions: Highlight current promotions to boost sales and encourage buyers to take action.
- Payment facilities: If you offer flexible payment options, such as payment schedules or deferred payments, make sure you clearly indicate these to make the purchasing process as smooth as possible.
- Shipping fees: Provide information on shipping fees to give the buyer a complete picture of the total cost of their purchase.
In conclusion, open communication on pricing is a powerful lever for winning over customers online, and is sure to make all the difference. By overcoming your reluctance and being transparent about your prices, you can strengthen your competitive position and make the buying process easier for your target audience. As the famous American entrepreneur Warren Buffett said, "Price is what you pay. Value is what you get". Although it can be scary, offering full price transparency is one way of demonstrating the value of your products to your customers. Displaying prices can potentially win over customers. So don't be afraid to show your prospects and customers that you're ready to accompany them through the buying process with complete confidence. You'll soon see the tangible benefits this will bring to your business.
To succeed in your B2B online sales strategy, share your prices with honesty! Would you like to present your products on a marketplace specialized in architecture, industry, medicine, boating, aeronautics or agriculture? VirtualExpo Group takes care of everything for you: configuration, adding your products and optimizing your stand for search engines. With us, new business opportunities await you.
