product pricing question

[B Cooper]

Hey there,

You could display your competitors prices on your website - however if the industry standard is say, $250 for the product, cutting the price by $100 could imply that it's of less quality. So just something to be careful of.

You could say something like "Only $150, exact same product as Competitor X ($250)". I wouldn't consider that to be unethical - however it could stir up the waters with competitors.

Good luck!

Brentis

[flower-child]

I was going to say the same as Victor - the content on their website is copyright - so be careful there.

I would also be wary of such heavy discounting. At that much difference, I wouldn't feel 'safe' buying something so cheap.

A reasonable discount, plus the value adding, as suggested, would be a much better offer.

[The Infotainer]

Please understand it is not a discount

the other guy is ripping people off

most people who sell this range from

$125 to $160

there is a difference between discounting on a competitor who is ripping people off and pricing accurately pricing.

You might feel bad or worried about buying the product from me at $150 but I guarantee you'll feel like an idiot and never go back once you find out the competitor is charging an extra $100.

the problem I have is that all my life I have sold a service ie my magic shows- and each entertainer can do the same tricks but the entertainer is different and thus you can change prices and outline the difference

with this box set it's a standardized thing that does not change, the service is the same they order it I send it.

the people I am targeting for this shop is the 2000 odd database of kids party enquiries not hopeing that people will find it on the web- so they already have some trust factor with me a quarter of those have booked me to do a show, so the database is about 1500 enquiries and 440 actual me doing their kids party so unless I did a horrible job at the party I think they will trust me and I have a money back guarantee pay me at the end of the show type guarantee and if your not satisfied don't pay- no one has ever not paid so there is trust

anyway my panadene fort is kicking in (just had my wisdom teeth out it hurts the "fort" is just a bit under power of valium and I am going to sleep and this monitor is so bright

[Steve_Minshall]

What on earth are you worried about?

I wish I had this problem. I have to keep an eye out all the time for what ever stupid loss-leading deals my chain store competitors are doing. If one of my competitors was overpricing then yippee? They may be ethically wrong but over charging on a magic kit is hardly time to call A Current Affair.


If a price is too high people just won't buy.

[websitedesigner]

I think you taking a screenshot for your site is more unethical than him asking for a high margin. The market is there to deal with it this. If people don't believe it's good value they wont buy it. I'd be focusing more on your own business and not worrying so much about your competitors. I know web companies that charge $20k for a site that we would charge $2k for and someone else might charge $500 for. I don't spend time worrying about it.

[themot]

Originally Posted by The Infotainer

Please understand it is not a discount

the other guy is ripping people off

most people who sell this range from

$125 to $160

there is a difference between discounting on a competitor who is ripping people off and pricing accurately pricing.

Quick, someone call ACA a business is making a profit!!!

It's worth whatever people are willing to pay for it, there is no such thing as ripping someone off if they are prepared to pay that money for it. What your witnessing is capitalism at work, if you can't deal with it go live in one of the handful of communist states that are left and execute your "fair prices for all" strategy there.

[The Infotainer]

cheers

yes I had just bought my one way plane ticket to China,

I was just asking the question cheers all

[Spider]

Originally Posted by The Infotainer

Please understand it is not a discount

the other guy is ripping people off

most people who sell this range from

$125 to $160

there is a difference between discounting on a competitor who is ripping people off and pricing accurately pricing.

"Mind your own Business"

[King]

To quote a saying from the sharemarket - the market is never wrong - that is if people are paying that price, then that is what the price is.

Of course products are different because the source of purchase is open.

My thoughts:
Why worry about the $250 - you say he is selling to budding magicians, you say you are selling to people who have booked parties with you. These are two different markets and therefore have two different price points. You see this all the time. Same product, (maybe slightly different packaging) but very different price points.

Don't play price silly buggers. otherwise you will be like a dog chasing its tail - focused on the wrong thing.

Potentiall set up a landing page with very similar content, so you will be there in the SERPs and the market will soon find you...

Is his mark-up unethical - no. The market is smart enough to decide if the price is too high and if he can convince people of the value, then they are happy to pay it. If not, they 'walk' away.

The world is full of products with a 2, 3, 4 up to 700% markup.