Yes this can be true. Sounds counter-intuitive so Let me give you 2 examples.
Dell: The famed computer giant from US has become huge by offering customers the option to customize their laptops for virtually any configuration.
Bluenile.com : For the uninitiated this is the largest online retailer of jewelry in US. Here you can custom make rings that fits your budget, style and occasion. All this at prices well below any offline store can offer.
Alright but how do they actually save money?
The answer lies in the economics of shelving cost. Simply put every item you find in the shelves (or jewelry boxes) of a retailer carries an overhead attached to it. This overhead is the interest money a retailer pays to its investors, banks or whomever they might have borrowed the money from. This cost is directly passed on the customer and the retailer adds some of his own margin to the final MRP.
So your final price tag looks like this: Actual cost of the product + Interest Cost + Retailers Margin.
These giants have very cleverly eliminated the "Interest Cost" part in the equation effectively bringing down the prices.
How do we do it?
At Kathana Jewellers we have effectively emulated this strategy at our offline store. This allows us to give our customers virtually any kind of ring they desire within a budget determined by them.
With a back office in the diamond city : Surat, Gujarat, we are well connected with the diamond manufacturers . After an order is placed we order your diamond directly with the manufacturer and set in the design of your choice. All this in 2 weeks time.
And yes we have more than a dozen satisfied customers. You not only get a ring of your design , You actually save some money in the process.
Please note this is not an e-commerce initiative. You can find our exact co-ordinates here
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Thank You ...Trendylicious!
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