Buy.com-- CLICK
For most items, Buy.com shows the list or retail price and their price, and then they calculate the savings. Its very simple and very clear. Youve probably seen this format before, but what makes Buy.com so good? Because I know what a list or retail price is. Both pricing standards are independent of Buy.com. And the service allows me to compare Buy.coms prices. They sure help in that process by calculating the savings.

Igadget.com-- CLUNK
Igadget.com lists two prices for each product, the "Regular Price" and "Our Price." Is there a definition of a "Regular Price?" If a site's not willing or can't say "List" or "Retail," "Regular" can be anything they want it to be. It could be last week's Lotto number. Most shoppers are probably looking for creativity in their products. I dont know of any that look for creativity in the products prices.

Soundcity.com-- CLICK and CLUNK
They begin by marking their prices with cryptic "originally" and "now only" labels. CLUNK. But unlike Buy.com, they've got their shipping and handling information right up front with all their pricing info. Plus, they're upfront about their Price Protection plan. CLICK.

The pricing landscape

Prior to the Internets popularity, only people within the industry had access to pricing information. Raw materials, dealer costs, and competitive prices were proprietary data for years. But now with the Internet, that same information is available to everyone. The customer knows as much as the retailer. This can be a tad scary for the businessperson who for years had plenty of pricing leeway. Not any more. The e-tailer must now act like a savvy shopper. He must be smarter than the smartest consumer.

Dont let this scare you, because all those time-honored pricing techniques youve learned still hold true online. To stimulate purchases, you can still offer loss leaders (products below cost) or email coupons. Its still the same pricing game, just with smarter players. Enjoy.