The End of “Reseller” Pricing

spokesguyA 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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FCC Shines A Little Light On New White Space Uses

mike2After making its announcement that June 12, 2010 would be the last date to legally use wireless microphones that occupy what is known as the 700mHz band (also known as “white” space), the FCC has given the first official word as to what new uses we might expect in this reallocated spectrum.

The city of Wilmington, NC will use frequencies within this part of the broadcast spectrum to operate wireless surveillance cameras and environmental sensors in what city officials are calling a “smart city” deployment.

Wilmington has been on the leading edge of these developments before, being the first city to publicly experiment with high definition digital television broadcasts before this service was rolled out nationwide.

The FCC has issued what it is calling an “experimental license” which can be used while the final rules for using the newly available spectrum are worked out.

Here’s what Wilmington plans to do.

Their first use will be to transmit data from wireless traffic cameras in hopes of relieving congestion and reducing fuel consumption.

Second, Wilmington will install cameras in some city parks for surveillance.

Finally, the city will monitor and manage wetland areas in conjunction wit the EPA.

What might be most interesting is that commercial providers-primarily cell phone companies-can already provide all of these services through their data networks.

This sounds like it might just be an experimental “place holder” until major new players in the wireless  game like Google and Microsoft are ready to roll out new products since they are now clearing wireless mic users from the spectrum they purchased through auctions.

GoodBuyGuys.com is your online source for Permacel gaffers tape,Duracell Procell batteries,  Nashua duct tapeBay State wire tiesHosa and Entertainment One extension cords and OnStage Stand mic stands.  Join our discussion on wireless mic issues here.

Do We Really Need The Penny?

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I’ve been working on this idea for a while, but I need a little help.  It makes sense to me, but I can’t quite do the math.

There’s lots of talk these days about getting rid of the penny.  The government says that the cost of producing the one cent piece is more than the value of the coin and that the great majority pennies are in jars on dressers or in the sofa cushions.  Still, pennies continue to be produced by the millions.

One reason is pricing.  I have long believed in the power of a nine (e.g. $.99) in the pricing of items, making a customer subliminally believe that they are getting a bargain.  Its deeply ingrained in retail thinking and we use it ourselves on almost every product we sell.

Getting rid of the penny would mean a revolutionary new way of thinking about price.

How about this instead.

Get rid of the penny, but leave the nines (or whatever the number) in the price.  Every transaction would be rounded up or down to the nearest nickel.  A $.99 item would round up to a dollar when the transaction was completed, a $.91 or $.92 item would round down to $.90.  If the price was $.93 or $.96, you would pay $.95.

At the end of the day (or week, or month) I’m guessing that the total amount charged by a merchant, between rounding up and rounding down, would be almost, if not exactly, what would have been charged if the actual price was used, even after adding sales tax.

If this worked, current pricing psychology and pricing schema could remain in place, the books would balance, and that pesky penny would be a thing of the past.

Yes, I really thought of this myself.

Good idea, or no?  I’d love to hear from you.

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No Need To Go Shopping. It’s Already In Your Pocket

mike2I’m trying to learn to play the piano.   It’s one of the most frustrating things I’ve ever done, but I’m sticking with it.  I wouldn’t call it a hobby so much as an attempt to deny the aging process.

I practice at least a half hour every day, and the worst part of practicing, by far,  is playing with a metronome.  I’m ” tempo challenged” and this is no fun at all.

On Monday my metronome died (believe me, this blog is not a eulogy!) and  i realized pretty quickly that i would never get ready for my lesson without it.

I was ready to head for the mall, when I suddenly remembered “I have one in my pocket”.  A metronome?  Not exactly.  What I had was my Droid smart phone.  A quick search among free apps, and within less than a minute I had a new time keeper.  The cost?  $0.00.

Anybody who is in the business of designing and manufacturing small hand held devices has a really tough new challenge.  Are they going to be put out of business by cell phones.  Development of phones that do lots of other things is accelerating quickly and all sorts of device makers are impacted.

Students no longer buy or wear watches.  They use their phones?

Who needs a camera?  Some phones have zoom lens and 6 megapixel resolution?

GPS?  I wouldn’t want to invest in Garmin and Magellan stock.

Calculator or language translator?  If you’ve got a smart phone,  you’ve already got both.

This technology is even extending into areas with a very limited user base with applications like sound pressure level meters and digital remote controls for stage lighting systems.

I hate to admit it, but the monthly cost of my Verizon data plan is starting to seem like a bargain.

GoodBuyGuys.com is your online source for Permacel gaffers tape,Duracell Procell batteries,  Nashua duct tapeBay State wire tiesHosa and Entertainment One extension cords and OnStage Stand mic stands.  Got a favorite phone app?  Share it with us.

What’s Google Up To Now?

spokesguySome dismiss Google’s announcement that they plan to enter the business of providing broadband internet service as just more dabbling by a company that has too much money. They will probably regret it.

Taking on the problem of slow internet access that puts the US near the bottom of the world’s developed countries in internet speed could end up making Google a lot more wealthy and powerful than just online advertising ever could.

If Google is able to build and control the data delivery pipeline, then we have a clear historical example of what could happen next.  This is what broadcast television was about 70 years ago.  The moves that the three major tv networks made in controlling the airwaves gave them decades of exclusive control over the ability to deliver advertising to the entire country with little or no competition.

If or when Google builds and controls a data delivery system-particularly if it is better (read, faster) than what is currently in place, then the value of their advertising delivery capability to ad buyers will go through the roof.

If all you have to do in order to download a movie in minutes rather than hours is watch a couple of ads during the downlaod, then most people will happily watch those ads served up by Google while the download is going on.

If a doctor can stream 3D medical images at almost real time speed, then an ad from a pharmaceutical company being served up at the same time is, at worst, a minor annoyance.

Real time sports in high definition online?  I’ll click on the Budweiser ad.

Delivery of internet services by the telephone or cable companies is basically an “add on” that is burdened by infrastructure built for a very different purpose.  Their networks are already overloaded and their ability to expand has severe limitations.

When Google builds a network that shows consumers, advertisers and the government what really fast, open broadband networks can do, then they’ll have a choke hold on the ultimate ad delivery system.

Would I sit through a few sales pitches to have my internet speed increase by a factor of 10?  Can I have it now?

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It’s Getting Tougher To Find The Deals

spokesguyA troubling new pricing trend is developing in online pricing and it’s making things more difficult if you are looking for a deal.

Pressure from manufacturers to control the price that online merchants charge for certain items mean that more and more web sites are no longer posting pricing with their items.

What may first look like an unwillingness of the seller to show you the price may actually be an effort on their part to keep the manufacturer from forcing them to charge a price dictated to them.

When you look at an item on a web site but can’t see the price until you “put it in your shopping cart“, it may be an effort on the merchant’s part to keep the manufacturer from easily seeing what price is being charged.  Because the price doesn’t appear with the item,  it won’t be indexed at popular shopping “bots” like Shopzilla and Pricegrabber, making it a lot harder for the manufacturer to control.

New interpretations of anti-trust law have given the manufacturers a lot more power in dictating prices to sellers.  Posting “lower than approved” pricing at a web site may violate advertising agreements.  This is likely why you can’t see the price until you add the item to a shopping cart.

This makes comparison shopping a whole lot tougher.

Periodically we are approached by manufacturers who would like us to sell their products, but negotiations always quickly end if they attempt to dictate the price we will charge our customers.  So called “MAP” pricing (minimum advertised pricing)does not come into play when we determine how to price what we sell to you.

We will always strive to give you the best price without regard to what the manufacturer thinks we should charge.  If we can take advantage of lower overhead and other efficiencies to offer you a better price than the competition, we are happy to share the savings.

GoodBuyGuys.com is your online source for Permacel gaffers tape,Duracell Procell batteries,  Nashua duct tapeBay State wire tiesHosa and Entertainment One extension cords and OnStage Stand mic standsShare your ideas on internet pricing with our readers.

Who’s The Winner Here? Probably Not You

This week’s announcement that the US Justice Dept. would allow the merger of Live Nation and Ticketmaster is a game changer for the entertainment industry.

If you’ve attended a major concert or other arena event recently, you realize that you can’t turn around without someone sticking their hand in  your pocket, even though you’ve already bought a ticket for the event.

Start with the ticket service fee.  You can’t buy a ticket without paying that, even if you purchase at the box office.

Next comes parking.  $7.00 is the going rate around here, and some tickets automatically add a parking surcharge to every ticket, regardless of how many patrons might share a ride.

Next comes concessions.  Mandatory purse and backpack checks assure that you won’t bring in so much as a bottle of water.  Once you’re inside, prices range from $4.00 up for a simple snack to as much as $11.00 for a beer.  If you’re covering the cost for a family of four, your out of pocket expenses can easily double the ticket price.

Ticketmaster and Live Nation share the credit for devising this system, and the Justice Department decisions means that it is now open season on event patrons.

By allowing these two companies to combine forces there is no longer any reason for one to try to gain a competitive advantage over the other by pricing tickets or add ons more competitively.

If you are concerned about this pending monopoly, you might find this web site interesting.

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Since When Is Google An Entrepeneur?

mike2This blog has been following the “white space” debate (issues regarding reallocation of broadcast spectrum used for wireless mics) for some time.  What appears as a “final decision” by the FCC regarding the date for ending use of the 700MHz band for these microphones has led to a whole set of new questions.

One of the justifications for kicking wireless mic users out of the neighborhood has been that opening up this part of the spectrum would lead to opportunities for entrepreneurs to develop new wireless technologies.

It’s fine to claim that you support entrepreneurs, but since the price bid for the 700 MHz spectrum was in excess of $19 billion dollars, we’re not talking about your garden variety start up.

Players like Google and Verizon were the real winners here and it’s unlikely that opportunities for real entrepreneurs are going to filter down from monsters like this.

The 700 MHz band may well see exciting next generation wireless services for both consumers and public agencies, but those developments won’t come from someone who simply has a good idea.  They’ll need a bag of money too!

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Might Be Time For A Password Change

spokesguyIf the password for your bank account is 123456, you’re in good company.  Apparently the need for difficult to guess (read, difficult to hack) passwords is lost on millions of internet users.

As more and more financial and other sensitive transactions migrate to the internet, the need for upgraded security at the user level is lagging dangerously behind.

Recent New York Times research identified about 30 passwords that tens of millions of users turn to over and over.  One of the most popular is “password”.

New tools available to hackers allow automated attacks incorporating the most popular passwords to break into supposedly secure accounts.  Increasing the pool of most popular choices from 30 to 5000 shows that a full 20% of internet users’ passwords are included.

Fast computers coupled with speedy networks give hackers the tools to go after thousands of accounts simultaneously.  Couple this capability with software that can automatically resubmit passwords over and over until access is gained, and the time consuming problem of cracking log ins is not longer an issue.

For secure passwords, always mix numbers, letters and characters and use both upper and lower case.  Use 12 character passwords to protect your most sensitive data and stay away from the most popular 30 choices.

GoodBuyGuys.com is your online source for Permacel gaffers tape,Duracell Procell batteries,  Nashua duct tapeBay State wire tiesHosa and Entertainment One extension cords and OnStage Stand mic stands.  Read about our security policy here.

The Final Word-For Now

mike2The FCC has issued yet another “final ruling” regarding reallocation of the 700 mHZ broadcast spectrum, that part of the spectrum used, until recently, for wireless microphones.

As reported in the New York Times (Jan. 16, 2010), the FCC is standing behind the 2008 auction of this spectrum for new users, hoping to promote the development of “a whole new generation of wireless services”.

This version of the ruling essentially changes nothing regarding the intention of the FCC to no longer allow wireless mic use in this part of the UHF spectrum. It makes the date of June 12, 2010 the final deadline for theatres, concert tours, churches and entertainment venues to give up use of any wireless equipment operating in this band.

Fortunately, by putting off the final implementation of this new ruling (yet again) the Federal Communications Commission has given the users of unlicensed wireless mics (almost all users) the better part of two years to make the transition.

Major manufacturers, including Shure, have extended their rebate offers one more time, so there are still incentives available for those how have put off making the frequency change.

The title of the FCC’s official pronouncement on this issue is titled,

OPERATION OF WIRELESS MICROPHONES IN THE 700 MHZ BAND
IS PROHIBITED AFTER JUNE 12, 2010

There is not really much need for interpretation to that sort of language.

If you are interested in the specifics of this ruling directly from the FCC, you can read it here.

If you’re not sure if your wireless mics are covered by this ruling, you can consult the FCC’s official list of offending manufacturers models here.

There is more information regarding this transition at our web site wirelessmic.net.

GoodBuyGuys.com is your online source for Permacel gaffers tape,Duracell Procell batteries,  Nashua duct tapeBay State wire tiesHosa and Entertainment One extension cords and OnStage Stand mic stands. Click here for unbeatable deals on Shure wireless microphones.

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