The company removes a penalty, hidden or per-transaction fee that customers disliked in the incumbent (late fees, annual fees, commissions, surprise charges) and makes the price simple to see.
How Transparent Pricing works
Removing a fee customers resent turns a grievance with the incumbent into a reason to switch, and makes the offer easy to compare.
How companies won with Transparent Pricing
From the win chains in Strategy Canon case studies: what the winner did, and what its rival did at the same step.
vs. Afterpay · 2014–17
Affirm
A loan priced in full at checkout, with no late fees
What it did
Total cost and end date shown before purchase, simple interest, no late or penalty fees (2014-17)
Afterpay
Four interest-free payments with $10 and $7 late fees
Which fee did customers resent, and what did the company do about it?
Who names it
Author
What they call it / where it appears
Kim & Mauborgne +
Eliminate: removing factors the industry takes for granted
Note. Near miss: A pricing page that lists three plans. Does not count: A low price alone (Penetration Pricing), or 'simple pricing' self-description with no named incumbent fee.