Price is a great conversation starter. I have been helping a friend who launched a small retail shop. His challenge is to become known in his area, but he doesn’t have the money to take the traditional approach (commercials, direct mail, large events, etc.).
Money or no money, he does have two things, product that people want and brands that other retailers in his area are selling.
So in theory, if he can sell the high demand products for dramatically less it will get people talking in a positive way about the great pricing. Which will increase his chances of people braving the unknown to check him out.
I have been pushing him to sell certain products at cost and keep the rest a little lower than retail, while he’s in startup mode. Isn’t it true, when a 50% sale happens, people talk about it? Especially when it’s on $300 and $400 items.
The owner offered my family and friends wholesale pricing on this years snowboard apparel. This naturally excited me. Out of the 5-6 people I offered it to, 1 person took me up on it and spent a couple hundred dollars. This created a purchase from someone who was not even considering it. But more importantly, everyone in my circle is buzzing about this little retail shop and I’m just one person.
As data tells the progression of a sale; first comes positive talk, then comes positive perception and then comes purchases.