Tripwire is a company that makes purchasing decisions much easier for business travelers by providing price comparison websites for major travel providers. Let’s take a look at how you can price your Tripwire product using their website as an example.
Create A Product List
When you create a product on the Tripwire website, you start by giving it a name and a short description. You can also choose what category your product fits under (such as cruises or car rentals). You can add photos and videos of the product or the service you are offering. Once you have created your product, you can add it to a “quickbuy” section at the top of the page.
Here’s where things get interesting. When a potential customer lands on your product’s page, they will see a list of other companies’ offerings for the same travel need. They can then click on a link to compare prices and offers from various airlines, hotels, and car rental companies. This is a simplified example, but you get the idea; with Tripwire, you can empower customers to quickly find and compare multiple travel options.
Some travel experts might see this sort of comparison shopping as undermining the purpose of a packaged deal. But if you understand that not all customers are created equal, you can understand why Tripwire’s approach might actually work. Some experts believe that empowering customers to research options and compare prices increases efficiency and encourages more people to buy packaged travel because it’s easy and convenient. Plus, it’s always nice when a company “embraces” the power of the customer instead of ignoring or antagonizing them.
Set A Budget
If you are offering a product that you think might be of interest to a particular customer, you can set a budget for the package that you are offering. This is particularly useful if you are trying to keep your pricing low so you can offer a good value. You can also set a “maximum cost” for the product. If a customer’s credit card is denied because it exceeds a certain amount, you can give them a refund or let them know what the maximum cost is for that particular travel package. Setting a budget is important because it can help you determine what price you should actually be taking off the top. In most cases, you will want to set the budget at a level that is 2-3x the actual package cost. You will then mark it up by a certain percentage to create what is known as a “profit margin.”
So, if you are renting a luxury apartment in New York City for a week, the budget might be $10,000, but you would want to charge closer to $15,000 to maintain a decent margin. You can use this formula to figure out the right pricing:
- Package Cost x 2
- Maximum Cost + Margin
- Batch Travel Performed
Marketing And Positioning
When pricing your Tripwire product, you must keep in mind that you are competing for customers with other travel providers. So the first step in positioning yourself for success is to pick the right keywords and phrases in your written content, as well as in your website’s metadata (such as its title, header, and body copy). Make sure that these words are relevant to what you are offering and that they appear multiple times in the copy (because that means it’s important to the search engines).
You should also create a short description for your product that will appear next to your listed items on the “quickbuy” page. The short description is another place that you can incorporate keywords and phrases to ensure that the right customers see your product. Don’t just put in a bunch of keywords and phrases – make each phrase relevant to what you are offering and try to use a combination of words (instead of just one word). The more relevant and unique content you can pack into these two pages, the better. These are often referred to as “landing pages” because that’s basically what they are– pages that can help a customer find and click on your product. Think of a landing page as a “mini-version” of your product’s page, meant to draw in and retain customers who are currently interested in your product. This is a very important step in the funnel because it gives you something to work with instead of just having an idea in your head of what the final product should look like.
Build On The Basics
Once you have built your product’s page, you can start to add more detail and useful information. On a basic level, you will want to add photos and videos of the product, along with pricing and other details that you think might be useful to prospective customers. You can also add a map with directions to your place of business (if you are traveling to another city or country) and contact details (including an email address).
As you continue to add more content, take time to look for ways to improve the experience for customers. One expert says that you should focus on the following areas:
- Installation / Set Up (if applicable)
- After-sale Service.
- Cancellation / Refunds (if applicable)
If you are relying on deliveries or installations, you will want to make sure that these services are available in all the major cities or countries that your product is designed for. In some cases, you might have to pay extra for this delivery or installation option. You can then use the additional charges to cover the cost of the product. As for refunds, you will want to make sure that your customer service department is capable of providing these when necessary. If you are selling a rental vehicle, you will want to make sure that the rental company returns the vehicle in good condition – otherwise, you might have some serious legal issues on your hands.
Calls To Action
When you are selling a product or service and trying to convince a customer to purchase it, you might choose to highlight certain benefits or features that make your product preferable to others. You can then use these to encourage the customer to click on a button (or take some other action) that will lead them to make a purchase.
In our example above, we used the “quickbuy” button to bring customers to a landing page that showcased additional benefits of renting a luxury apartment in New York City for a week. While calls to action such as this aren’t necessary with every product or service, you can think of these as “sticky” or “leading” elements that help to draw a customer’s attention to specific areas of your website. They can then click on these areas to learn more about your product or service, or to take a look at your competitors’ offerings.
Make It Easy
To make it easy for customers to find your product, you can add a map with directions to its page. If you are shipping the product to a different location, you can add the corresponding delivery address as well. When customers are looking for a vacation or a luxury trip to somewhere exciting, they might come across your product and learn about it from there. This is often how many online retailers generate sales from abroad – by helping customers travel easily and pleasantly to where their product is from (while also making a profit off the effort).
With travel, all customers are not created equal. Some will want to visit multiple continents while others want to stay close to home. Some will want to go during the week while others prefer to travel at the weekend. Some will want to drive while others will want to fly. Each person’s travel needs are different. That’s why it’s important to look at all the options and compare everything fairly and objectively. By giving customers the information that they need to make the right decision, you might find that they are actually your most valuable asset.