[taneq]

> You're also lacking cases where the markup is high, 500-2000% is common among a wide range of products, from Fashion to SaaS.

The article does cover those cases explicitly:

> Extremely high profit margins (>55%) could trigger a negative reaction, although this was not tested.

Basically they didn't even bother because it's pretty clear that someone selling a commodity for a massive markup is not going to benefit from this approach. Of course, that doesn't mean this hypothesis isn't worth testing...

Disclosing your costs if you have a modest profit margin and also modest absolute costs is good signaling on multiple fronts (as long as you're credible):

- Higher parts/ingredients costs are a signal indicating good quality

- Low profit margins make customers feel like they're getting a good deal

- The appearance of transparency signals your own confidence in all aspects of your business