Ethical question. Do I compare my competitors price to mine

**rumblepup** · #1 (**permalink**) 01-30-2006, 03:23 AM

(First, let me say that I would love to post what I will be selling online, but I'm reluctant to give away my business vehicle right now. I trust the members of this forum, but I'm a little scared of giving away my idea just yet. I apologize for the slight mystery.)

A little ethical question. The products I'll be selling on my store are niche but not unique. Some other e-commerce websites have the same products, with feature differences. I've done a lot of research, and every single time, my products, which are better quality, and of better workmanship, with more features, I will be selling for much, much less. For instance, I have one item which is considered the deluxe/ premium model, however, I'm selling it for the same price as a competitors ENTRY LEVEL model.

Is it ethical or even smart to show those differences? In other words, a link on my site to compare my prices with other online stores? Should I lift the prices from the other online stores, or should I post a link so a shopper can compare. Is there a right way to do this, if it should be done at all?

cyanide · #2 (**permalink**) 01-30-2006, 11:18 AM

Sure, explaining to the visitor about how your pricing is lower than industry-standard is a good idea.
I don't think I would link to your competitors, though.

Maybe just simply put, for each product
Industry Price: $xx.xx
Our Price: $xx.xx

**dharrison** · #3 (**permalink**) 01-30-2006, 03:02 PM

I agree with Cyanide. Sure you could put competitors prices on your site, but you'd have to watch them almost constantly as prices do change.

And whats to say that at some point in the future, their prices drop lower than yours? That would class the whole exercise fruitless.

I am intrigued what your selling tho.

HTH

jestep · #4 (**permalink**) 01-30-2006, 05:12 PM

I think that by doing a direct comparison, you are going to guaranty that some of your visitors are going to leave to check out your competitors. Maybe your competitors have something more appealing than you do. Something as stupid as the font that another website uses could be appealing enough to sway a customer. You just lost a customer to a competitor and you sent them there.

Unless you are absolutely sure you are offering the best service, best value, and best price of anyone out there, and you have time to check your competitors and update your own site as needed, don't do it.

I personally look down on comparing with anyone, even industry wide, especially since nearly everyone that does this inflates the 'industry price' a lot. Leave the comparisons to comparison sites. Work on delivering the message of a good value for the visitors you do have.

Customer testimonials are a much more effective tool than comparisons. Use the space for something like that instead.

**brian.mark** · #5 (**permalink**) 02-01-2006, 01:52 AM

We've tought about using a "Progressive" approach on a different page so people could compare our prices to the price of our biggest competitors. Many offer data feeds through their affiliate programs already, so it'd be a simple matter to set that up.

We've even considered starting up an industry specific shopping comparison engine to get prices for those that don't have feeds available to the public. Of course, we mostly want to see products that we're higher than them on so we can adjust if necessary or turn them in if they're violating MAPP (minimum advertised pricing policy).

We're still planning on rolling this out at some point later this year, but I need to get our server upgrades done first. Our traffic is just getting to be too good. :-)

Brian.

ADAM Web Design · #6 (**permalink**) 02-01-2006, 02:39 AM

There's a difference between price and value.

If you start comparing your prices to competitors rather than describing what makes your products better/more original/unique, then all you're going to get are the tire kickers. And the tire kickers are the biggest pains in the ass as customers.

So stay unique, never mind what your competitors are doing, and in the most literal sense of the term mind your own business.

MarcieZoob · #7 (**permalink**) 02-01-2006, 08:26 AM

I'd recommend being mindful of what your competitor is doing - since you will be selling products online, you want to make sure you remain competitive. However, I would not recommend making comparisons on your website to your competitor. Tell your site visitor why they should buy from you without "dissing" another business. It doesn't look good and does not read well.

ppanwar · #8 (**permalink**) 02-01-2006, 08:23 PM

You need a good combination of price and quality to get repeated customer. You need to prove how your products/services are better.

I have seen price comparison charts on hosting website, but that doesn't work for me. You don't have to prove you are better by putting a comparison on your website.

**rumblepup** · #9 (**permalink**) 02-04-2006, 11:55 PM

Thanks for all the input. After reading your replies, I think I'll use the "percieved value" technique. I'm going to sell the quality and value of the products first. The price will be obvious, especially since the web promotes informed buying.

And yes, I'll be posting testimonials as soon as I get them.

I'm almost ready to let you guys in on my products. I'll be posting for my design and so forth as soon as I can.