Traditionally, most businesses are based on a simple idea: The business, whether it’s a car dealership or a financial planning firm or a plumber knows more about the work than the customer does.
By leveraging the information, the business can sell what it sells at a higher price. Afterall, what does the customer know about cars, the market or plumbing other than they need a new one, better return or something unclogged?
But what happens when the customers know as much or more than the business does? I was thinking about this recently when I keynoted a conference for a major car company. Not too long ago, the car dealership was the first place an interested customer went to find information. Now, the dealership is the last place the client visits and when they arrive, the client knows as much, and maybe more, than the salesperson does.
Think about it. Prices go down, substantially.
This is going to happen to every business, every sector everywhere. When information is set free, will it help you or hurt you?
Seems to me like a good time to change your model.