Re: Pricing Strategies, was directories Re: Pricing Strategies, was directories> There is still some sense in going to Staples from a suppliers
> standpoint as well as a individual one -- one transaction instead of
> many.... one shipment received instead of many.
Absolutely. Let the retailer worry about credit, collection, returns, etc.
Also it's fun to shop!
> With telemarketing now, at least for the significant consumer oriented
> companies you aren't paying for the call, they are. Yes. They will save
> money if we call them via the Web. But that still doesn't affect the most
> significant part of the transaction cost -- cost of finished goods, etc.
For most goods you're right. Toilet paper, admittedly, is on the extreme fringe
of the equation, which is why I used it as an example.
> I agree that WWW/laptops aren't necessarily an improvement over
> tactile catalogs. I do think that Web catalogs will be important.
I agree. The neat thing about Web catalogs is that you can launch a
conversation with the supplier right from the document. Try that while
you're sitting on the can reading the Sharper Image catalog...
> Especially with regard to one thing I forgot to mention in my earlier
> post -- the fewer catalogs a company can mail, because of WWW
> presence, the greater reduction in marketing costs. That's where
> there might be significant savings over time, that can be passed on in
> lower prices.
I think that *more* targeted marketing will occur, not less. This will be more
costly to the supplier, and more fruitful too, as the hit rate will be higher.
But I don't believe that the inclusion of digital media will reduce overall
marketing costs for an organization. I think it will add to the marketing
complexity and drive cost up. But again, I think that additional cost will be
repaid by more sales.
Lee