We want to continue to provide you with insight and guidance on Pricing. For this month’s column, we spoke with Doug Gober again as he answers more popular pricing questions. Continue reading below as we provide information on competitor pricing.
Question: Should I set my prices lower than my competitors to gain market share?
Doug Gober: The critical factor when determining your pricing should be how you want to be seen in the marketplace. Since the funeral and cemetery market is segmented, it is a challenge to be all things to all people. It would be in your best interest to focus only on your business and define who you want to be in the marketplace rather than what your competitors are doing.
This idea of determining your position is certainly more important than seeing what your competitors in the market are doing. You cannot ignore what is going on around you, but what you can do is decide how you want your business to function in that market.
Regardless of the price point you choose, you need to consider these thoughts from the consumer, “Am I getting from you what I am paying for at that price point?” and “Do I perceive your pricing as value for the money spent?” One last thing to consider, is the new views of the funeral and cemetery consumer. At a time when consumers are demanding pricing transparency and are desperate to understand the value proposition, we need to be certain that our prices are clearly defined. They want to see and understand more upfront today, than they did previously.
Our 2022 research tells us that 50% of consumers said they will not do business with you if you do not provide price transparency. Consumers are taking their best experiences from other large purchases and are now expecting those same practices from funeral directors and cemeterians. This demonstrates the importance of creating an open discussion and not hiding from difficult conversations.
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