Tuesday, June 09, 2009

Half baked efforts..

We live in an increasingly fragmented reality and often enough it is difficult to see the full picture when trying to turn inventions into innovations. Very strong focus can be put on the many aspects needed to make new services take off - like general utility, clinically simple user interfaces, reusing excisting user experience and stressing environmental and other societal importance.

Still - far to often - the most important aspect - transparent pricing showing users that present practises are expensive -  is not implemented. This happens despite us knowing that this "negative carrot" is needed to make users move - act logically in their own interest. My own experience is that we would never have been able to move fast into e-banking without charging more for manual processes in branches. The result was that total cost of banks (not really costs for banks - but costs for bank customers - who pay every cent..)  in Finland was cut in half.

Why is it so difficult to add the most effective tool - transparent pricing? It takes some bravery - as media and most consumer organisations (sic!) oppose visible pricing and politicians thus do not have the guts to protect consumers real interest and further more dimensions in competition.

But we are seeing a new trend now as invoice senders in many countries already are starting to charge extra for paper invoices. For every logical reason the best thing for the customers - also for those who are prepared to pay for the privilage as the lower total cost will give space for lower service charges.


Mika Repo said...

Imagine introducing the idea of transparent pricing to other areas. When you are going to hardware store looking for a new shovel. Instead of one price tag you see two prices. One telling you the price if you buy it from the store. Another one telling you the price if you order it online straight from the manufacturer, without any retail and wholesale margins. We still are far from utilising all the possibilities of e-commerce - thanks to old habits.

BoHarald said...

This is the way it is going..