thecleanTusk

In today’s digital age, consumers value transparency. They want to know what they’re getting, at what cost and compared to which competitive brands. When a product is labeled as POR, it can come across as deceptive and selective. This lack of transparency can delay potential buyers, purchasing decisions by making them feel like there might be hidden costs or different prices for different customer profiles.

While the intention of this pricing method may be to create an aura of exclusivity, it doesn’t always convert into desirability. Often it may have the opposite effect by making consumers might perceive the product as overpriced or not worth the effort to inquire. The mystery can be more off-putting than enticing. Even despite the interest in the product, some customers may forget to get back to request the price.

When a consumer is interested in a product, they want information immediately. POR acts as a barrier to this. Instead of making an instant purchase decision, they have to reach out, wait for a response, and then decide. This delay gives them time to reconsider, compare with other products, or even lose interest altogether.

Luxury brands might be targeting a niche audience, but even within that niche, there’s a broad spectrum of consumers. Some niche brands have a large globally spread audience and some may not have the patience to pursue a POR item. For mass marketing, where the goal is to reach and appeal to as many potential customers as possible, POR can be a significant hindrance in moving the target consumers down the marketing funnel. This type of friction may even increase marketing costs.

Without a set price, there’s room for inconsistency and even fraud. Different customers might be quoted different prices, leading to confusion and potential brand damage. If consumers realise that they were charged different prices, even by mistake, this can lead to a negative brand reputation and decrease in brand loyalty. Fraud is even worse, negatively motivated sales associates and imposters may embezzel funds from unsuspecting consumers, this may eventually lead to litigation.

This is an era of instant gratification. Consumers are used to getting information at their fingertips. POR goes against this grain, requiring an additional step and waiting period. This can be especially off- putting for younger consumers who are used to immediate answers. This also goes against one of the internet’s best digital marketing models, Zero Moment of Truth. This model was designed to support the fact that openly providing relevant and sufficient information consumers helps them make purchase decisions.

While a brand might be using this pricing technique, competitors may not be. If consumers can easily find out the price of a similar product from a different brand, they’re more likely to spend their time understanding that brand, leaving the “DM for price” brand at a competitive disadvantage.