Raw Honesty: What Consumers Want in Pricing

<img src="http://live-diamond-certified-wp.pantheonsite.io/wp-content/uploads/ImageForFeb-newsletterBLOG.png.jpg" alt="ImageForFeb" style="height: ;width: "/> In the retail sector, I’ve noticed how a few companies (like online retailer Everlane) are taking a novel approach and disclosing variable production costs for individual products. Everlane sometimes posts information and images about their suppliers, too. Sharing cost breakdowns is a form of “intimate disclosure” that’s well-received by consumers, according to a Harvard Business School (HBS) paper titled “Lifting the Veil: The Benefits of Cost Transparency,” by Bhavya Mohan, Ryan Buell and Leslie John. They say transparency only backfires when cost disclosures lead to the perception that prices are out of sync with the norm, so consumers have the perception of being ripped off. I believe—and research backs this up—that savvy consumers appreciate having costs explained to them. Transparency increases our attraction to a brand and makes us trust it more. In fact, the HBS researchers found that when a business reveals everything that goes into a product or service, we tend to value the product more. I’m all for raw honesty. How about you? <a href="https://www.diamondcertified.org/" target="_self">Use Diamond Certified Resource to find top rated companies.</a> Related Articles <a href="https://www.diamondcertified.org/Guide/Savvy-Consumer/" target="_self">Your Guide to Being a Savvy Consumer</a> <a href="https://www.diamondcertified.org/find-expert-advice/" target="_self">Get Expert Advice From Owners of Top</a> <a href="https://www.diamondcertified.org/find-expert-advice/" target="_self">Rated Local Companies</a> <a href="https://www.diamondcertified.org/membership/" target="_self">Become a Diamond Certified Preferred Member (Always Free)</a> <a href="https://www.diamondcertified.org/find-top-rated-companies/hub/ca/san-francisco-bay-area/" target="_self">Find Top Rated Companies in the San Francisco Bay Area</a>