Wednesday, November 10, 2010

The inverted business model

How many times have you checked out that latest piece of equipment at the store, just to go back home and research for the best price online and buy it?

It happens all the time, specially with high ticket items and stuff that you have to try on (shoes, clothes, etc.). The physical part of testing the unit and trying it on works better in a brick-and-mortar setting. At the same time, the we is made for price comparison. This is usually the biggest challenge for the online retailers. There is almost no difference between one and the other if they use the same software platforms and the same logistics solutions. So the only factor available to differentiate is price.

So is the Brick-and-Mortar and the neighborhood store extinct? Not really, and just the other day I had an epiphany. I had reversed the model myself. I have been contemplating to purchase a certain book that I have researched online. I even had the book in my Amazon wishlist. But I just happened to be in Milwaukee, and passing in front of Downtown Books. And I couldn't resist to go in.

I found it! Used and inexpensive. I bought it immediately out of impulse!

So what's next? MP3 sharing club at a local joint?

It happens to be that the dust hasn't yet settled under the Internet sun.

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