NET GAINS - Profit from Transparency
3. Communicate your value proposition. You need to educate customers about the elements of your value proposition. Customers often may not even know what variables they ought to be thinking about and how you stack up against competitors. Internal communication is equally important. The sales organization will tend to use price as its only competitive weapon if it doesn’t really understand the company’s value proposition. Obviously, the sales force has to be able to quantify the economic benefits of nonprice variables.
By following those steps, companies that truly provide better value will profit from transparency?they’ll move the conversation with customers away from price to value. So, transparency is not necessarily an enemy of profit. But it is an enemy of profit based on customer ignorance. The sobering question you need to ask yourself is, Is an informed customer really a better customer for my company? If the answer is yes, you should embrace transparency by making your value proposition explicit to your customers. If the answer is no, you need to find another way to make a living.
