Post by arfankj4 on Mar 9, 2024 0:45:44 GMT -5
Shoppers seem to appreciate the cost of raw materials such as cotton but certain expenses like the cost of transportation seem like a waste of money to people John says—even though it is indeed a very real cost for the company. Yet even if the costs don t seem allocated in an ideal way from the customer s point of view the customer still applauds the company s willingness to share its production expenses.
Even if it isn t exactly what the customer might envision the customer appreciates the act of disclosure Mohan says. It s unclear whether a company might see these benefits on a sustained basis particularly if a number of retailers selling similar items all started revealing their costs. Presently only Poland Mobile Number List a few retailers practice cost transparency. For example Everlane everlane is a San Francisco based online retailer that reveals the variable costs of production for each of its products as well as images and descriptions of the factories where products are made. And Honest By honestby a Belgian retailer augments cost transparency on its website with detailed supply chain information for each component of each garment right down to the hang tag. This was a novel thing to do and the advantage is probably greatest when it s perceived as novel John says.
The paper also noted certain cost transparency caveats for retailers.costs if the cost structure provides a competitive advantage. In addition contracts with suppliers may prevent making certain information public. And it just may be that companies don t have the information readily available—for example in cases where goods are produced by a variety of manufacturers. For companies with goods and services that depend on high fixed costs such as research and development and overhead simply providing variable costs may not accurately reflect to consumers many of the other expenses incurred. For example R D expenditures in the pharmaceutical industry involve more than just the cost of producing one particular drug.
Even if it isn t exactly what the customer might envision the customer appreciates the act of disclosure Mohan says. It s unclear whether a company might see these benefits on a sustained basis particularly if a number of retailers selling similar items all started revealing their costs. Presently only Poland Mobile Number List a few retailers practice cost transparency. For example Everlane everlane is a San Francisco based online retailer that reveals the variable costs of production for each of its products as well as images and descriptions of the factories where products are made. And Honest By honestby a Belgian retailer augments cost transparency on its website with detailed supply chain information for each component of each garment right down to the hang tag. This was a novel thing to do and the advantage is probably greatest when it s perceived as novel John says.
The paper also noted certain cost transparency caveats for retailers.costs if the cost structure provides a competitive advantage. In addition contracts with suppliers may prevent making certain information public. And it just may be that companies don t have the information readily available—for example in cases where goods are produced by a variety of manufacturers. For companies with goods and services that depend on high fixed costs such as research and development and overhead simply providing variable costs may not accurately reflect to consumers many of the other expenses incurred. For example R D expenditures in the pharmaceutical industry involve more than just the cost of producing one particular drug.
