Did you know that 62% of car buyers now use both online and in-person channels when purchasing a vehicle? They compare prices in real-time, check financing options, and expect immediate clarity on costs. Yet, many dealerships still operate without a transparent pricing model, relying on vague pricing structures that leave customers frustrated and hesitant.

 

Customers today are different. They research before they buy. They compare prices online. And they want clarity. If they don’t get it, they walk away. The car industry is seeing this shift firsthand. A recent UK survey of 1,000 car salespeople found that transparent pricing is now a key priority. Dealers who embrace it are winning customer trust, increasing sales, and staying competitive in a challenging market. Businesses in every industry can learn from this.

 

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The Old-School Pricing Game Is Over

 

For years, car dealerships operated on a model that left pricing intentionally vague. Buyers would step onto the lot, unsure of what they’d actually pay. The final number depended on how well they negotiated, their credit score, and what extras the dealer pushed.

 

This worked when customers had little access to information. But now? They arrive armed with data. They’ve checked online listings, read reviews, and even calculated financing options. A hidden price isn’t a strategic advantage anymore—it’s a red flag.

 

Businesses outside the car industry make the same mistake. They fear that listing prices will scare customers away or give competitors an edge. But the reality is, unclear pricing does more harm than good. It creates distrust, slows down decision-making, and often drives potential buyers to competitors who are upfront.

 

Introduction to Price Optimisation 💰 Podcast Ep. 74!

 

The Cost of Hidden and Unclear Pricing Strategy in a Business

 

Many businesses assume that keeping prices vague helps them control the sales conversation. In reality, it creates friction.

 

Take car financing as an example. The UK study found that car buyers are increasingly relying on personal loans, with over £300 million recorded in car finance loans in 2024. But dealers are frustrated with slow credit approvals and delayed payouts. The lack of transparency in financing terms and pricing leads to hesitation, stress, and lost sales.

 

This problem extends beyond dealerships. Whether it’s software, consulting services, or retail, unclear pricing puts unnecessary roadblocks in the customer journey. If a buyer has to call for a quote, wait for a response, or decode a complex pricing model, they often give up. The sale is lost before it even begins.

 

 

 

Shifting to a Transparent Pricing Model

 

So, what’s the solution? Businesses need to rethink pricing from the customer’s perspective. Instead of asking, “How can we maximise flexibility?” the better question is, “How can we make the buying process easier?”

 

1. Display Prices Clearly. Customers don’t want to guess. If your prices vary, offer a transparent range or clear pricing tiers. If custom quotes are necessary, explain what factors influence the price upfront.

2. Justify the Value. Transparent pricing doesn’t mean racing to the lowest price. It means clearly showing what customers get for their money. Car dealerships that break down costs—base price, optional add-ons, financing fees—help buyers feel informed and in control.

 

Pricing Recruitment For Pricing Managers!

 

3. Simplify the Process. If financing or additional services are involved, make them seamless. The UK survey found that 56% more car finance requests happen on weekends when traditional business hours don’t apply. Businesses must adapt by offering fast approvals and digital convenience.

4. Train Sales Teams to Sell with a Transparent Pricing Model. Salespeople shouldn’t fear clear pricing. Instead, they should embrace it as a tool to build trust. The best dealerships empower their teams to have honest, straightforward conversations about cost.

 

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The Future Belongs to Businesses With a Transparent Pricing Model

 

A transparent pricing model isn’t just about listing numbers—it’s about making buying easier, building trust, and removing frustration. The car industry is leading the way, proving that clear pricing strategies drive both sales and loyalty.

 

Businesses of all sizes, across all industries, should take note. In 2025, customers won’t tolerate pricing games. The businesses that embrace transparency will be the ones that thrive.

 

Customers crave trust and simplicity—give it to them, and they’ll reward you with loyalty. Need help figuring out how to make transparent pricing work for your business? Let’s chat. Reach out today, and let’s create a strategy that works for you.

 

For a comprehensive view of building a great pricing team to maximise growth in your company, Download a complimentary whitepaper on A Capability Framework for Pricing Teams.

 

Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?

If so, please call (+61) 2 9000 1115.

You can also email us at team@taylorwells.com.au if you have any further questions.

Make your pricing world-class!