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Crazy Eddie meets Best Buy... on the web! |
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Sometimes you have to almost give your |
| product away to make it succeed. |
| When prices drop through the floor, |
| lossleader.com shows you where to score. |
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The story of business is, more often than |
| not, the story of failure. And as the |
| prospect of failure nurtures strong |
| reactions of desperation, careless, |
| panic-driven schemes often masquerade as |
| modest proposals. The concept of loss |
| leaders is one such anomaly, wherein |
| companies drive up sales by reducing |
| prices below cost, in the name of |
| building customer awareness of the brand |
| and service and establishing consumer |
| patterns. It's a time-worn tactic, and |
| one need not search out $49 Southwest |
| airfares or 99-cent Whoppers to find |
| footprints of this Armani-clad Yeti - |
| just look at the web. |
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| Lossleader.com both recognizes and |
| respects the pretzel logic of this market |
| proposition while exploiting the |
| opportunities it presents for |
| value-minded consumers. While a fool and |
| his product may easily be parted, those |
| who supply the cleaver deserve, at |
| minimum, a butcher's wage. By monitoring |
| the full grid of consumer industries and |
| sorting on the basis of location and user |
| profile, lossleader.com will help users |
| find bargains while cultivating |
| much-needed market entropy. Just as |
| self-destructive tendencies in |
| individuals often inspire friends to |
| stage "interventions," lossleader.com, |
| friend of industry, intervenes on behalf |
| of shoppers everywhere. Screwball |
| business antics were never this much fun! |
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While initial implementation costs could |
| be low if the breadth of the service is |
| kept modest, this enterprise could scale |
| to be not just a service, but a way of |
| life for many. Like Consumer Reports, |
| this could function as an ad-free |
| service, and even be delivered directly |
| to people's desktops via time-sensitive |
| email bulletins or a Pointcast-like |
| screensaver. Unlike the companies |
| monitored by lossleader.com, though, |
| we would launch with a firm |
| subscription-based revenue model that, |
| while modest, would more than cover the |
| nominal expenses of inspecting |
| traditional value outlets for |
| irresponsible offers. Within a year of |
| launch, we predict that the same service |
| could be repurposed to apply to stock |
| trading, providing even more lucrative |
| opportunities for buyers - and ourselves. |
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courtesy of
Duke of URL
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