Thursday, February 26, 2009

Doing our Bit

So how do you do your little bit to assist avert a Global Economic Meltdown?

If you are like me, and run a trading website, then, like me, you can lower prices to consumers.
Why? There's a fair chance that if pricing is perceived as being too high, folk bail at the last minute, before completing their purchase.

We see it all the time.

At Nutshell our sell-through is about 52% for folk who start the completion process.
Why do they bail? We do not know, exactly, But we know that they do.

How do you remove that barrier to purchase? I guess there are lots of ways, but the primary one would IMHO be to lower the cost of ownership - and that means lowering the profit margin.

There is obviously only so much you can discount before you start to run into problems. Obviously.

But hey, a little bit may just go a long way, and if we can get more people to finish what they started, then obviously we are ahead on points.

Oh,,, and likely the most telling point is that, because we are in NZ and not in our primary market, the exchange rate 'twixt here and there means we still cover costs and make a profit locally...without feeling that we are 'gouging' our customer.

And that surely is all about passing the benefits on.
Isn't it?


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