What should I do when customers ask why my prices are different from my competitors'?

Answer

Let’s think about why our customers feel that their question is reasonable. Do they go into the gas station and tell the cashier that they can get gas for $0.03 less around the corner? Nope, they do not. There is a key difference between our business and the gas station’s business. The gas station’s prices are highly visible, even when they are changing constantly, while ours are most commonly not.

We can apply their displayed pricing strategy in our industry, even though our pricing is equally fluid since it is based on the particulars of any specific order. Establish set prices for your core products. If you often sell a particular brand and style of golf shirt, set pricing for that shirt with a basic left chest design and an oversized left chest design. This allows for higher pricing for larger stitch count designs.

Also, create an add-on price for additional logo placements. Look at your pricing as if it were a menu at a fast food restaurant. Make “adding fries with that” easy to understand in your business, except that the fries are the additional placements, for example.

NNEP