Look, we’ve all seen it.
A customer walks into your shop, picks up a product, looks at the price tag, and then immediately pulls out their phone. You know exactly what they’re doing. They’re checking to see if they can get it five bucks cheaper on Amazon or some big-box website while they’re standing on your floor, using your aircon, and taking up your time.
It’s bloody frustrating.
I was chatting with a shop owner over in Bulimba last week who’s been in the game for twenty years. He told me he felt like a ‘showroom’ for the internet. People come in to touch the stuff, ask him ten questions, and then go home to buy it online.
My honest take? If people are price-checking you, it’s usually because you’re making it too easy for them to compare apples to apples. If you sell the exact same toaster as Kmart, and Kmart is cheaper, you lose. Every time.
But there are ways to price your stock and set up your shop so that the ‘online price’ doesn't even matter. Here is how we help our clients move away from the price wars and actually keep their margins.
The Trap of Identical Items
If you sell a branded item that has a specific model number, you’re in trouble. Customers aren’t stupid. They’ll Google ‘Sony Headphones WH-1000XM5’ and find the lowest price in three seconds.
If that’s your entire business model, you’re basically competing on who can survive on the thinnest profit margin. That’s a race to the bottom, and trust me, you don’t want to win it.
To stop the comparisons, you have to break the link. You need to offer things that aren't easily searchable. This might mean sourcing unique local brands, creating your own bundles, or focusing on items where the 'model' isn't the main selling point.
When you beat online giants, it’s rarely because you were cheaper. It’s because you offered something they couldn’t find with a quick search.
Bundle Your Way Out of Trouble
One of the fastest ways to stop people price-checking is to stop selling single items.
Let’s say you run a hobby shop. If you sell a remote-controlled car for $200, the customer will check the price online. But if you sell a 'Starter Kit' that includes the car, a spare battery, a carry bag, and a 30-minute 'how-to-drive' lesson for $280, the comparison dies.
Why? Because the customer can’t find that exact combination online. They can’t be bothered doing the math to see if buying the individual parts separately is cheaper. They just see the value and the convenience.
Plus, you’re adding a service (the lesson) that costs you nothing but time, but has huge perceived value. This is a massive part of how a boutique shop wins against the big guys. You provide the stuff they can't download.
The Psychology of 'The Middle'
Most people don’t want the cheapest thing, and they’re scared of the most expensive thing. They want the 'safe' choice in the middle.
I see so many retail owners only stocking two versions of a product: the basic one and the fancy one. Most people go for the basic one because they don't want to get ripped off.
If you introduce a third, 'Premium Plus' option that is significantly more expensive, your old 'fancy' option suddenly looks like a bargain. It’s called anchoring. You aren't necessarily trying to sell the most expensive one; you're using it to make the mid-tier price feel reasonable.
"If you only give a customer one price, their only choice is 'yes' or 'no'—but if you give them three prices, their choice becomes 'which one is right for me?'"
— Emma Richardson, Social Media Strategist
Stop Using 'RRP'
If your price tags say 'RRP $99, Our Price $89', you are literally begging people to check if someone else’s price is $79.
Recommended Retail Price is a gift to online retailers. It sets a ceiling that everyone knows is fake. Instead of focusing on the discount, focus on the total solution.
When a customer asks, "Is this your best price?", your answer shouldn't be a nervous look at your calculator. It should be a list of why buying it from you today is better than waiting three days for a cardboard box to arrive from a warehouse in Sydney.
Talk about your easy returns. Talk about the fact that you’ve already tested the unit. Talk about the free assembly you do in the back room. These are the things that make the extra $10 worth it.
The 'Convenience' Tax
Don't be afraid to be a bit more expensive for the sake of convenience.
Think about a chemist. You can buy a bottle of water at the chemist for $4.50. You know it’s $1.00 at the supermarket next door. But you’re already in the chemist, you’re thirsty, and you don’t want to line up again. So you pay the $4.50.
Your shop is exactly the same. If you have what they need, right now, while it’s in their hand, most people will pay a 10-15% premium just to have the problem solved immediately.
If you find your shop gets quiet, don't immediately slash prices. That just tells people your stuff wasn't worth the original price. Instead, look at how you're presenting the items. Are they easy to grab? Do they solve a problem right now?
Focus on the 'Add-On'
Your main product might be price-sensitive, but your accessories shouldn't be.
If you sell a pair of leather boots, the customer might know the price of those boots. But they have no idea what a good tin of high-quality boot polish costs. They’ll happily pay $15 for a tin that cost you $4.
This is where your profit lives. The main item gets them in the door; the accessories pay your rent. If you aren't training your staff to suggest the 'perfect partner' for every purchase, you're leaving thousands of dollars on the table every month.
What Should You Do First?
If you’re feeling the pinch from online competitors, don't panic and start a clearance sale. Try these three things this week:
1. Audit your top 10 sellers. Are they identical to what’s on Amazon? If yes, find a way to bundle them with something unique or a service you provide. 2. Check your signage. Remove any mention of RRP. Focus on the benefits of buying local (instant pickup, local warranty, expert advice). 3. Rearrange your counters. Put high-margin, non-searchable items (the 'problem solvers') right where people stand to pay.
Look, the internet isn't going away. But people still like buying from people. They like walking into a shop in Paddington or North Lakes and talking to someone who knows their stuff.
Price is only the most important thing when it’s the only thing you’re offering. Give them a reason to value your expertise, your convenience, and your service, and they’ll stop looking at their phones and start reaching for their wallets.
If you’re struggling to get people through the door in the first place, or you’re worried your website is actually driving people away, give us a shout. We help local Brisbane businesses get more enquiries and make more sales without having to be the cheapest guy in town.
Chat soon,
The Team at Local Marketing Group