Why do we have car ads quoting prices that exclude the costs of registration, tax, delivery and so on?
Why can’t Amazon show you all-inclusive prices on the things that you’re browsing, since they know who you are and where you live?
Why, when you’re buying a flight ticket online, do they show you one price but you end up paying another with the additional taxes, surcharges, and so forth? Does it really matter that the flight is cheap, when the extras make the total purchase a larger number than I had in my mind? A number that YOU had put there in the first place.
These hidden, non-optional extras drive customers crazy. Yes, you’ve got their attention (and maybe even their initial business) but hiding these things until close to the end of the transaction leaves a bad taste in the mouth. When you charge $500 delivery on a $30,000 automobile purchase, the only thing that the customer remembers is the insult of having to pay the hidden extra.
Why not quote the price that the customer will pay, and explain why it looks like your price is more than the next guy? Customers aren’t dumb. Customers get it. They will thank you for it by coming back.
It’s not about dropping your margin, or thinking that you’ll lose share to the competition. It’s about the customer leaving with a smile on their face.