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Index
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Make Your Price Sell!
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6. Dynamic Pricing...
Say Good-Bye to the Fixed Price
Let’s spend a moment on the 30,000 foot view of business and ecommerce...
First of all... business is still business. None of the age-old laws of economics
have been repealed.
Right now, the Internet simply provides a new way for companies to market to,
sell to, and support customers. The Web’s global reach and its 24-hour
accessibility improve the speed and lower the cost of doing business.
During these amazing transition years, a company can gain a competitive
edge through smart use of the Net. Simply put, smart use of the Net makes
business operations more efficient. Which, in turn, improves the bottom line.
Right now, companies are capitalizing upon this “efficiency” feature to
differentiate themselves from their competitors. Online catalogs, order
processing, and customer support offer cheap, efficient access for both the
buyer and the seller.
It’s a powerful way to gain a competitive edge and build a business. Think
about Cisco’s and Dell’s phenomenal growth on the Net.
However, capitalizing on the Net to improve efficiency is roughly the equivalent
of using the telephone as an improvement over local messengers or telegraphs
(in 1877-1878, no serious business person believed that the telephone had
more potential than local applications). The business world is currently
wringing all the obvious business advantages out of the Net. And then...
Business will shift into hyperdrive as companies switch from merely becoming
more efficient, to using the raw “Netness” of the Internet to fundamentally
change the way businesses “do business.” How we price products is an
excellent example...
6.1. The Dawn of Dynamic E-commerce
The true potential of the Web is not being captured because business is still
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