Can you use a “Lowest Price Guarantee” for your Internet business? Here’s a must read tip
But Why Did The “Low Price Guarantee” Work for JustBeachTowels.com?
Is this loss leader strategy something that can work for any Internet business?
Rob summarizes why this works for his Internet business in his post:
The underlying lesson is to make your customers feel at ease with what they are buying. And to do this you have to know your customer.
People buying beach towels from a website are doing it because they want to save time. They want to find a towel and make the purchase as quickly as possible. They want to feel good that they are making the right decision about their purchase, which is what “Low Price Guarantee” offers.
It gives them permission to buy here and stop surfing around looking for the best deal because they’ve found it.
It offers the promise that they don’t have to continue down the list of Google results. If they can find a towel they like, they can check this task off their list. No one goes online to window shop for beach towels; people want to get in and get out while still feeling good about their purchase.
Evaluate Your Customers First
So you see — before you can start using this loss leader strategy, it’s important that you understand your customers better. In any business with competition, your best bet is to stay away from just being the cheapest provider - it’s NOT a guaranteed way to multiply your sales profitably.