At 09:02 AM 12/29/2000 -0800, Khurram Khan wrote:
> >Volume has nothing to do with it. The discount >should be
> based on the savings possible because of >our process. Any retailer
> >should be able to offer that - whether they be pure play
> (online only) or clicks and mortar.
> >
> I must disagree with you here George. Higher volume means
> higher savings. A lower volume retailer might not be able to
> offset the cost of adding a "GOLD" payment option to their
> system, however, it would be easier for a higher volume retailer.
Higher volumes have nothing to do with gold payments. A higher
volume retailer can offer discounts without accepting gold
payments. Wal-Mart, for example, owns 10-15% of the total retail
marketplace. The next nine retailers (to round out the top 10)
own another 15-20% of the market (the total for the top 10 is
30%, and I'm not sure how much Wal-Mart controls). Those "800
pound gorillas" determine how the retail space will go. They
have enough clout to offer discounts or not. For example,
Wal-Mart sued (and won) Visa and MC who were charging fees on
debit cards. The little guy can't do that.
The little guy, a/k/a/ independent retailers or momma poppa
stores represent 70% of the market. For them to compete they
need new and innovative products and services. So they seek
products that can't be purchased in the 800 pounders. Hence they
can get extra margins.
So, they would be ideal candidates to use gold payment to either
increase margins or pass on savings.
I write a column for Gifts & Decorative Accessories magazine, and
am heavily involved in the retail space. My engagement prior to
Standard Reserve was as Chief E-Commerce Officer for Silk Road
Gifts, Inc. where we represented the largest giftware
manufacturers in the world, and sold to the 800 pounders. I
initiated a program to sell to the independents, and learned a
lot about their particular needs. It would be similar to you
competing with the Treasury department (in scope, not functions).
The independents need help.
George
______________________________________
George Matyjewicz, Chief Executive Officer
Standard Reserve Corp. -- Atlanta, GA
Acct# 120018 Tel: 770-300-3070 Ext 2818
World Wide Currency for the World Wide Web
http://www.standardreserve.com
mailto:[EMAIL PROTECTED]
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