| Reply : |
In commerce everything boils down to the bottomline and the bottomline depends upon
the cost structures. Dot com Companies have immense cost cutting potential. As an example
let us take an item of daily use that you buy from the grocer. The route for this items
takes to reach the grocer passes through at least six intermediaries. Each one of these
have to have some margin for handling this item. And the final delivery point i.e. your
grocer must have at least 20% margin. This will be necessary to induce him to store the
goods and provide the service to you. Therefore, what you pay for the item is distributed
among at least seven "handlers" and the manufacturer normally gets close to half of what
you pay the grocer. In come Dot com companies. Theoretially, you place your order to a
computer on the net. The Dot commer advises the manufacturer to ship the goods to you
direct and bills you. Naturally, this item will come to you at a much lesser cost and the Dot Comer will
make money without having to incur any cost. In practice, however, there are a few costs
involved in aggregating the orders and arranging deliveries. but these costs are much lower
than the brick and mortar edifices. In future, therefore, you can look forwarded to cutting
costs through dot com companies.
|
