Jun

24

The literature on bundling seems to focus on the sellers' asymmetrical advantage; but the most common reason for bundling is the customer bias against paying for services as opposed to stuff. Our customers want to believe they are renting THE EQUIPMENT when they are actually renting our ability to unpack, clean, test, bill for physical damage, reprogram, test, pack and ship within minutes and juggle inventory against orders that can be cancelled the day before pick-up. No wonder Marx remains so popular; there seems to be an innate belief that physical objects are important in and of themselves and the inventorying and distribution of them is so unimportant that it should be available for free. Whether one believes in their business models or not, the social networking companies clearly understand this. They know that their users must receive the services without charge. No wonder the poor newspaper publishers were doomed. They actually thought they were selling "the news" when they were really getting paid for the paper and the ink.


Comments

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search