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WaterDR · 11-03-2007, 03:00 PM

Wow...lot going on here. At a professional Marketing manager for a Fortune 500 company, I can tell you that companies often times develop multiple makets for their products all the time. It happens every dam day. There are more examples that I could list if I had nothing but a week to type.

With the internet, it is very common for brick and motor comanies to compete in two different markets. When do so, they have to be careful to not damage their brand-cost reputation. This gives these companies a few options:

1 - Always keep prices consistent between internet shop and brick and motor.

2 - Limit what products you price differently in a manner in which the customer understands. For example, a special internet-only sale on a specific products that are short-lived. Customers generally understand this and won't punnish a business.

3 - Offer exceptional customer service in the store. This allows you to set prices a bit higher in the store and divides your customer base between those that value and are willing to pay for the help and those that do not need it.

4 - Place disclaimers on cheaper products found on-line. For example, limited or removed warranties, open-box items, slight-used stuff etc...

5 - Vertically extend your brand for the lower-priced items on-line. In other words, call it something else without hiding the original brand. People might think it is a bit inferior then and will be worth the lower price even if it is the same item.

In the case of the shop, you might have been willing to pay a difference, but got upset because the range was too much. After-all, you got service, the item installed and the labor was also probably warrantied.

11-03-2007, 03:00 PM	#21 (permalink)
WaterDR Administrator Join Date: Sep 2004 Posts: 6,395	Wow...lot going on here. At a professional Marketing manager for a Fortune 500 company, I can tell you that companies often times develop multiple makets for their products all the time. It happens every dam day. There are more examples that I could list if I had nothing but a week to type. With the internet, it is very common for brick and motor comanies to compete in two different markets. When do so, they have to be careful to not damage their brand-cost reputation. This gives these companies a few options: 1 - Always keep prices consistent between internet shop and brick and motor. 2 - Limit what products you price differently in a manner in which the customer understands. For example, a special internet-only sale on a specific products that are short-lived. Customers generally understand this and won't punnish a business. 3 - Offer exceptional customer service in the store. This allows you to set prices a bit higher in the store and divides your customer base between those that value and are willing to pay for the help and those that do not need it. 4 - Place disclaimers on cheaper products found on-line. For example, limited or removed warranties, open-box items, slight-used stuff etc... 5 - Vertically extend your brand for the lower-priced items on-line. In other words, call it something else without hiding the original brand. People might think it is a bit inferior then and will be worth the lower price even if it is the same item. In the case of the shop, you might have been willing to pay a difference, but got upset because the range was too much. After-all, you got service, the item installed and the labor was also probably warrantied. __________________ Black 2000 GT Vert: Novi-2000 with Intercooler (375rwhp @ 9 psi); Tune by Kauffmans; Roush 380R Body kit; Steeda Subframes; Steeda Strut Tower Support; Deep Dish Bullets; FRPP 4:10's; SCT 4 Position Chip with four custom tunes; Steeda CAI; C&L Pleum; BBK 75 TB; SLP Loudmouth; SLP Catted X-Pipe; Bullitt Suspension; UPR Conrol Arms; Focus Fuel Pump My Car My Email