retail price / online price / you save!

who thinks this is a better method of pricing?

[marcus76]

Ok,

I have this module that i can install for my ecommerce store. It will display the following:

Retail price £100.00

Online Price £90.00

You save £10.00(10%)

I'm curious to know if anyone is running this kind of pricing structure, if it's helped sales - everyone likes to know they have saved buying online etc.

Thanks Marcus

[JonR28]

wouldn't work for my site or for compUSA but if you are actually charging less than retail I think its great.

[pageoneresults]

In one of the industries I work it, this type of pricing structure has helped considerably. We are trying to groom the traditional retail customers into purchasing online. Part of that grooming process includes discounts and other incentives if they buy online as opposed to the traditional retail methods.

There is normally less overhead involved in an online purchase and it only makes sense to try and sway the consumer into buying online by offering incentives such as price discounts.

[netguy]

Marcus, we do that all the time, and I think it is worthwhile. Online buyers are always looking for a 'deal,' and showing the manufacturers list - compared to 'your' price is a good way to show they are getting a deal - even if it is just a perceived one.

The reality is, depending on the market, most manufacturer's MSRP is highly inflated. A good online shopper is often looking for a discount off the average 'street' price.

The bigger trend for many market segments are rebates. This further reduces the perceived price for the shopper, and the manufacturer has it down to a science, that fewer than xx% will actually go to the trouble to fill out all the rebate paperwork after the sale.

Steve

[mack]

I think th eoverall price is the most importaint aspect. But it may well act as a "sales clincher" to have the "you save" value close by.

Mack.