The Pricing Trap: Why You’re Losing Sales by Trying to Be the Cheapest

Let me tell you a quick story about a guy named Tom.

Tom’s a solid Amazon seller. He launched a kitchen gadget—a garlic press—that he sourced for $2.50 a unit. His listing looked clean, his photos were sharp, and his reviews started trickling in.

But then… he got nervous. His competitors were selling for $19.99. Tom thought, “What if I just price mine at $14.99? That’ll get me more sales, right?”

So, he did.

And yeah—he got a few sales… at first. But over time, things started to backfire.

📖 Real Talk from the Garlic Press Graveyard

Tom's product started attracting bargain hunters. You know the type—those who complain about shipping times and leave 3-star reviews for no reason. They weren’t loyal. They weren’t brand fans. And when a new seller came in at $13.99? Poof—Tom’s sales vanished like garlic breath after a mint.

He emailed me and said, “Andy, I thought being cheaper meant more sales. What happened?”

🔢 Here’s What Really Happened (and How You Can Avoid It):

1. Price = Perceived Value
   When you’re the cheapest, customers wonder: “What’s wrong with it?” Higher price can actually signal higher quality. That’s not fluff—that’s buyer psychology.

2. You Attract the Wrong Customers
   Price-sensitive shoppers are the least loyal and the most likely to leave poor reviews. You don’t want ‘em. You want buyers who value quality.

3. You Leave No Room for Profit
   Lower price means smaller margins. Smaller margins mean less for ads, less for tools, and zero buffer when Amazon hits you with a surprise fee (and they will 💸).

4. You Kill Your Brand Before It Starts
   If your pricing screams “dollar store,” good luck building a premium brand. Long-term growth needs margin, positioning, and customer trust.

🎯 The Big Takeaway

You’re not Walmart. You’re building a brand, not a bargain bin. Compete on value, not price. That means:

• Better images 📸

• Stronger copy 🧠

• Differentiated product (bonus or bundle it!) 🎁

• Stellar customer experience 🌟

💬 Say it with me: “Cheap is a race to the bottom. Value is the road to profit.”

🙋‍♂️ Wanna win this game? Start acting like a brand, not a bargain hunter. Build trust, raise prices, and attract customers who actually stick around.

👉 Save this line in your notes:
“If you're not making enough per sale to run ads, you're not really in business.”

Stay sharp, charge what you’re worth,

Andy Splichal
Founder & Managing Partner of True Online Presence & Author of the Make Each Click Count Book Series