Tip: Increase sales by showing your costs

With customers appreciating transparency more and more, open companies are on the rise. But if you're not ready to take that plunge, you can dip your toes while boosting conversions by displaying your costs.

A 2020 study found that sales could be increased by showing a breakdown of the costs involved in producing a product. In many cases, this increase was right around 20%. It seems that people felt more trust for the brand due to the transparency, which led to more purchases. And this was true for every profit margin that they tested (a range from 17% to 55%). It should be noted that they tested physical consumer products, but the effect held true for a wide variety and it's likely that it applies to digital products too. So A/B test it. Start by analyzing your costs. Doing this per product/user is difficult with software, so you may need to either give an estimate or just list your total costs. Then display them concisely wherever purchase decisions are made on your site.

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      Thank you! I think this is a very useful and easy to implement one for IHers. And the impact is huge relative to the effort.

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