A daily stop on my internet browsing journey is Seth Godin’s blog. He teaches simple life lessons from a business person’s point of view and he really speaks my language. I recommend him highly.
Today Seth’s posting deals with how a business can keep prices down by having a customer do some of the work. This is what internet pricing is all about. When we are able to get you to do most of the time consuming work in setting up an account (read-data entry) and processing payments (read-credit card authorization), then there are savings that can be applied to our pricing. A more direct route between us and our customers means a more efficient operation. Thus, a narrower profit margin is acceptable. No need for a middle man to do any hand holding on either side of the transaction.
We get the same phone call almost every day (different caller-same script). It always starts out “ I found you on the internet.” “We are a reseller and I was wondering if you have reseller pricing?” I patiently try to explain that we do have scaled pricing, but it is based on how much you buy, not who you are. It’s not like you found us on some sort of “secret” internet. If you found us online, then so can your customer.
By asking for “reseller pricing” you are asking me to pay you to do work that I have already done-making our company easy to find by anyone who might need our products.
Unless you can convince me that by selling through you that some sort of value is added for the end user, then we will continue to do all we can to avoid the middle man.
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