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October 16, 2011 at 3:27 pm #975470::
I have found a genuine supplier of magic trick box sets
I found a magic shop selling these kits for $250 and the price wholesale is $36 plus postage to get it here (it is a fairly big box)
Personally I don’t think it right to sell it for $250 there is a point where you draw the line and I think they crossed it about $100 ago
What are peoples thoughts on ethics if I was to take a screen shot of their price and put it on the product page where my price would be $125 or a lower amount to be decided and say your saving alot.
instead of saying your saving $125 show them the proof, I am a little unsure
Is it the nice thing to do? no of course not- but is ripping people who don’t know any better a better choice- No I don’t think so either- I don’t like people being ripped off, and yes there is the argument charge what you want, charge what you think it’s worth and some even say charge what you can get away with- I don’t share that- I charge what I honestly think it is worth
I can see the sales angle 50% off the competitors retail price which is very good- but is it ethical (or legal) to show the customer on my website – competitors prices?October 16, 2011 at 11:11 pm #1074617Kathy CreanerMember
- Total posts: 152
Price is what people are willing to pay. The important thing to realise when setting your price is that you have to decide what to charge. There are a number of factors to take into account, such as competitors’ prices and your costs. If you have personal drivers such as “I don’t want to rip people off” or “I want to make magic affordable” then they play a part in your decision too. Your competitors have made their own decisions about pricing, based on their own reasons and value systems. It doesn’t matter why they chose the price. The fact is that you are competing with them for the sale and that price may be a factor in whether or not you win the competition for a particular customer’s business.
If you are competing on price, then you may want your marketing to highlight that you have a cheaper price than your competitor. If you target a particular competitor by calling out their prices specifically, don’t be surprised if they target you back. For example, you say “xyz charges $250.” They change their price. Straight away, the accuracy of your website is called into question.
As for the ethics of showing competitor prices, that’s a personal decision for you to make based on your value system. I’ll leave the legality of doing it to the people who are qualified to know the answer.
Good luck with setting your price.
KathyOctober 16, 2011 at 11:20 pm #1074618SamanthaEMember
::The Infotainer, post: 94037 wrote:but is it ethical (or legal) to show the customer on my website – competitors prices?
- Total posts: 235
I am not sure about the legality of it, but Bunnings does this on their brochures as you enter the store.October 16, 2011 at 11:37 pm #1074619themotMember
- Total posts: 150
I think it’s a bit of a low act to do it to another small business, they have to make a profit somewhere. If it was Big W or something I would say go for it however.October 17, 2011 at 12:21 am #1074620bluepenguinMember
- Total posts: 1,026
I think one of the dangers in doing this, is that you can end up focussing so much on what other people are doing and charging, that you can forgot about promoting the good things about your own business.
That said, it could really work for you.
If you’re into adwords, you could try capturing some of that website’s traffic with some sneaky keywords.October 17, 2011 at 12:46 am #1074621Kathy CreanerMember
::bluepenguin, post: 94053 wrote:I think one of the dangers in doing this, is that you can end up focussing so much on what other people are doing and charging, that you can forgot about promoting the good things about your own business.
- Total posts: 152
Good point bluepenguin. I keep hearing variations of the following lately, “Price is what people pay. Value is what they get.”
What’s the value of your product? Will this box of magic tricks help the budding magician to become better at their craft? Can they get replacement parts if needed? Are the instructions easy to understand? If they lose the instructions, does your website provide a pdf copy of the instructions for download?
Promote the benefits of buying from you. Instead of discounting heavily, value add. Perhaps offer a $5 off coupon on next purchase of $50 (reward existing customers instead of attracting price-sensitive customers who won’t return).
There’s so much more to marketing your products than setting the price.October 17, 2011 at 1:11 am #1074622AgentMailMember
- Total posts: 1,741
I understand that the snapshot would have more impact, but it sounds as though you have a conscience, and I don’t think it would really sit well with you. Perhaps you can just make reference to it…
‘Elsewhere $250 with Infotainer, just $149’ or something like that. If I was the customer, I’d then be like ‘Yeah right, bet it’s not $250’ then I’d go searching, and to my embarrassment, I would find you were in fact right, and buy from you anyway!October 17, 2011 at 1:54 am #1074623victorngMember
- Total posts: 626
In general, price comparison is fine BUT …
… it needs to be correct. That means you must constantly monitor your competitors’ prices to ensure your ad is not misleading.
… you can name your competitor and even use their trade mark but be careful with screenshots of websites – may potentially run into copyright issues.
VictorOctober 17, 2011 at 2:52 am #1074624Shaukat Adam KhalidParticipant
- Total posts: 1,528
You seem to be basing your price on cost where as someone like me bases my price on value rendered.
i also base my price on experience – not just the core service. an experience with me is a paradigm shift for most and very few can offer something similar.
whilst i may charge at least double the industry standard, and therefore appear as a rip off to some, its’ still only 20 % – 30 % of my mentors which makes it a bargain.
one man’s fun… as the saying goes. since you are mentioning cost, it seems that you are not offering anything different and the experience, pre & post purchase support from you is exactly the same elsewhere.
if you position your service and product as a commodity, you will have no choice but to compete on price. you may even feel guilty about increasing your price or consider others who charge a higher price as rip offs.
how about charging $250 + free 2 X 15min coaching session valid for 12 months?October 17, 2011 at 5:03 am #1074625::
thanks l for their comments
The price is based in part on how much it cost me to get it, but also what my expert eye believes it is worth
The instructions are on DVD in NTSC format which I will pull apart and recreate in PAL so I will have a back-up copy of the DVD instructions
side by side it is the exact product, exact packaging I want to achieve sales from this product but also a good will to my business for future birthday bookingsOctober 17, 2011 at 8:30 am #1074626B CooperMember
- Total posts: 211
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.
BrentisOctober 17, 2011 at 10:10 am #1074627SalenaKnightMember
- Total posts: 604
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.October 18, 2011 at 4:31 am #1074628::
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 brightOctober 18, 2011 at 9:41 am #1074629Steve_MinshallMember
- Total posts: 518
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.October 18, 2011 at 11:16 am #1074630websitedesignerMember
- Total posts: 917
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.
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