Common Misconceptions about Price Matching

In a very competitive market, and to avoid misconceptions, businesses develop and use different strategies to gain the upper hand and oust their competition. One of the weapons used to dominate the market is price. The price of a commodity has a huge impact on its demand, especially because consumers like you and I are attracted to lower prices. Price-matching is a policy used by businesses that guarantees their customers that if they can find a better price elsewhere prior to purchase, they will match that price.

However, people don’t really understand what price-matching entails, how it works, and how they can fully utilize it. Consequently, there are a lot of misconceptions about price-match guarantees. Below are some of these misconceptions and their accompanying truths:

Price MatchIt’s Easy to Avoid Misconceptions:

While price-matching may seem like a great policy, there are a lot of boxes to tick before your price can be matched. First, the item whose price you’re comparing must be exactly the same in every possible way. For example you want to purchase a t-shirt and you realize that the same t-shirt cost less in another store, you must ensure that the color, size, design, weight, and quality of the two t-shirts are exactly the same before the price-match policy can apply.

Stores Are Happy To Match Your Prices:

This could be wrong. You may ask yourself, why introduce a policy if you’re not happy when people use it? Small businesses often can’t afford to accept a loss on one item and they only adopt price-matching to remain competitive. Yes, offering to meet or beat any competitor’s price can draw customers in, but if small business owners can’t make up for that loss, they’ll crumble as a business.

Matching Competitor’s Prices Will Increase Sales:

This may not be true. Yes, we know that price is a weapon in the market and consumers are going to chase after lower prices. However, small businesses and startups simply can’t compete with larger retailers. It could ruin their businesses. Other strategies such as improving the quality of service and products, responsive live chat and customer service support, giving add-ons and small gifts to customers, and adding value to your service will surely make your business stand out regardless of your prices and attract more customers to your business.

I Can Apply The Policy To All My Purchases:

This doesn’t always work. At least not at Best Buy stores. Their policy states that price-matching is limited to one item per customer – so if you walk in to Best Buy hoping to buy 5 of the same item and apply the policy on each, you’re only going to get the price of one item matched and pay regular price for the other 4. Quite frustrating don’t think? Well, there are other very interesting things contained in the price-match policies of many businesses if only you care to study them.

Nevertheless, price-matching remains one of the most successful strategies employed by businesses to increase sales and attract more customers, keeping them loyal and happy.


 

Identity TheftThis article was written by Emmanuel Ozigi, a biochemist in the making from Nigeria. In my spare time, I’m a science, health, and fitness blogger. I also specialize in graphic design and photo editing. I also have this insatiable hunger for information and the desire to learn new things. Visit my blog at http://sciencehealth24.com.

 

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