How to Be Transparent With Your Company

Thomas mentioned that sales of wallets increased when the costs were disclosed, but this principle also worked with other products. The researchers found that disclosing the costs of chicken noodle soup bowls increased sales by 21.1% in the Harvard campus canteen. They also discovered that people were 16.1% more likely to bid for an Everlane backpack when they saw its cost information, and purchase intent for a $4 chocolate bar went up by 14.2% when participants saw the breakdown of its costs. This tendency to value things more when we see the cost and effort that goes into creating them is known as the labor illusion, which is exemplified by Buffer. Buffer, a company that sells social media scheduling software, practices radical transparency by sharing detailed information about its costs, revenue, customers, and even employee salaries. This transparency has contributed to Buffer's success, capturing people's attention and building trust. Since it works in the lab and for Buffer, it's definitely worth trying for you.