Imagine how much operational costs are cut due to the presence of e-commerce.
Posted: Wed Jan 22, 2025 6:35 am
Hey, wait a minute, operational costs are one of the entry barriers for business people to enter the market. If the entry barrier , in this case operational costs, can be reduced, then there will be more new players in the market. As a result, competition will be even tighter. Not to mention if players in the e-commerce market offer goods that have relatively the same function and price. What will you do as a seller? Cut prices?
Maybe, if you are thinking of reducing profit margins by slashing prices or “just to bahamas email list get your money back”, you are not alone. Now many industries are in a mess after the presence of e-commerce websites.
Because, potential customers can compare similar products with the price offered. Of course this will affect potential customers who are sensitive to price ( price-sensitive customers ).
You can see this phenomenon clearly in the hotel industry. Many hotels are engaging in price -wars to get price-sensitive customers. The result, of course, is not good for the business itself.
Fortunately, in the hotel industry there is a method of revenue distribution or what is often known as revenue management . With revenue management, the hotel business can survive if the hotel room pricing strategy can be executed correctly.
Maybe, if you are thinking of reducing profit margins by slashing prices or “just to bahamas email list get your money back”, you are not alone. Now many industries are in a mess after the presence of e-commerce websites.
Because, potential customers can compare similar products with the price offered. Of course this will affect potential customers who are sensitive to price ( price-sensitive customers ).
You can see this phenomenon clearly in the hotel industry. Many hotels are engaging in price -wars to get price-sensitive customers. The result, of course, is not good for the business itself.
Fortunately, in the hotel industry there is a method of revenue distribution or what is often known as revenue management . With revenue management, the hotel business can survive if the hotel room pricing strategy can be executed correctly.