Biz question of the Day

So after a heated discussion at lunch…today's business question. If you see a product being sold by both a reseller and a direct business, and the product is the same price and specs, why would a customer buy direct? Would your direct business basically be attracting the customers that aren't doing a price check with other resellers, or is their a compelling reason to buy direct? Better yet, why would someone buy direct if the price at the reseller was like $200 cheaper?

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2 responses to “Biz question of the Day

  1. As discussed at lunch…
    How deluded are site operators who think that fine tuning of the web experience will overcome an uncompetitive price? I just don’t understand why a customer would offer to buy an identical product at a $50 to $200 premium from a vendor site, when it only takes 20 seconds to do a Web search and come up with alternatives.

    Yet there are vigorous discussions about all sorts of web experience changes that are somehow meant to make a difference. Wake up people…. Start with the key factors first.

  2. Matt – congrats on being the 2nd person posting on my blog. you win a prize. I think it all comes down to incentives (as does everything really). If somehow the direct seller gives a customer an incentive whether that is a better price, bundling a product with a special promotion, or some better warranty, than the direct seller can compete with a reseller. But until that happens you fight an uphill battle with selling direct.

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