Price matching has recently become one of the best tools in business competition. I’m sure you’ve heard of it, but just in case, price matching refers to a business policy where if a customer can find a lower price at a competitor store, the business will match – and sometimes even beat – the competitor’s price. It’s all a game to lure customers to your own shop instead of the competition, since price is often times the number one factor in where a customer decides to shop.
Price matching has been around for a while, but it’s become a little more complicated lately, with the growth of online shopping. Since store catalogs, prices, and sales ads are at the tip of everyone’s fingers, consumers have started a practice called ‘webrooming’ – researching items online before they buy in the store. They also may engage in ‘showrooming’ – checking out a product in store before they buy it online. These tactics put the power in the hands of the consumer, who has the ability to gather price facts and make an informed decision.
Price matching is often a tool of large companies that, in an effort to guarantee the lowest prices for their customers, may match prices found in other sales ads or on websites, or even beat those prices by as much as 10%. But can price matching work for small business owners, and should they consider a price matching policy this holiday season?
That is the topic of discussion in Ramon Ray’s (Small Biz Technology and Smart Hustle magazine) recent article for the Endicia Savvy Shipper blog, titled “Price Matching: What It Is and How Your Business Can Keep Up This Holiday Season.” In that article Ramon tells us a little more about price matching and how small business owners should deal with price matching as they try to maximize holiday sales.
Before you adopt a price matching policy – or decide against one – I suggest you check out Ramon’s advice.