Why price transparency still matters for online business

As a former online business co-owner, my partners and I had the controversy of whether or not to be transparent about our prices online, especially on Instagram and Facebook. Most times, we chose to be non-transparent because we wanted our prices to stay anonymous to our competitors. But it was also an opportunity to engage in ‘intimate’ bargaining conversations with our customers. If they were on board, a rapport would be created, thus considering them retained for the long run.

But should price non-transparency among many online businesses in Uganda be considered as an error considering the increasing number of customer grievances?

In a poll post on Instagram, the public was asked if online retailers should reveal their prices rather than telling potential customers to “please inbox for price.” 

94 per cent of the respondents said yes from a customer’s perspective, while the 6 per cent that said ‘No’ were business owners.

Price discrimination and time wastage were the challenges majority of the respondents highlighted. One business owner stated that being non-transparent allows her to negotiate with her customers.

 In such a competitive online free-market with big players such as Jumia, Kikuu and Bazebo that are price transparent and offer customer incentives, every customer matters to your online business if you want to remain a market player.

Without the right information customers need to purchase, they will quickly walk away from your products to your competitors’. Other customers might grow suspicious if the information required to purchase is hidden from view.

Here is why price transparency is fundamental for your online business;

Time-saving

Imagine running an online business with high social media engagement rates and your comment section and inboxes on every platform are full of that one annoying question; How much? What a waste of time to reply to every person privately in their inboxes, and yet you are not sure if they will buy! With price transparency, you will only deal with customers that are willing to buy, regardless of the price because they know your products’ worth and value. 

Small businesses should not waste time trying to lure customers with price negotiations and endless bargains, instead, they should focus on their customer retention strategies for their loyal customers such as loyalty programs, product personalisation and good customer service. Once your customers are satisfied, recommendations for your brand and products are inevitable which in the long run puts your business at a competitive advantage.

Value, brand image emphasized

For customers to be loyal to your product and brand, your values must emphasize transparency, honesty and non-discrimination, by not judging customers based on what you think they can afford from the bargaining inbox chats you intend to have with them. With price transparency, your product will be defined and quantified based on its value and worth by customers from all walks of life. Listing your prices makes your business more attractive than any competitor’s whether your products are considered expensive or inexpensive. Besides, there are several ways you can offset the fear of customers for not approaching your businesses if your prices are considered to be above the average.

Weeds out unqualified leads

In this new era of online shopping where customers can easily compare prices and find the best deal conveniently, transparency is a magical key to the success of any business. 

By Maclean Atuhaire