#1
I was playing tennis today at one of the clubs nearby. I know the people who own this club very well. I used to work as a coach for them, and before they owned it, I worked at the same courts as a coach for the previous owner. I'm the only person who has been a part of the workings of the courts for both owners. Of course, I no longer work there, but clearly we're all still very friendly.

Today, I noticed that they had a new racquet in stock. It's a very nice one. Federer uses it. I'm in the market for a new racquet, and this is one of the ones that I'm considering buying, so I asked if it would be okay for me to take the demo racquet to use for 10 minutes or so. This is common - you shouldn't buy a tennis racquet without using it.

"Sure!", they said. But what happened next left me totally perplexed. "We charge 10% of the purchase price to use the demo racquet, and it's non-refundable. The reason for this is that if we don't, people will just buy the racquets online."

In this case, the cost of using a racquet for 10 minutes would have been $40 which I would never see again. Without a doubt, this is one of the dumbest ways to cope with online sales undercutting your prices that I've ever heard of. Though to be fair, I was planning on buying the racquet online, anyway.

Now, in this instance, it's clear what this business should be doing to cope with the pressure of the internet. Lower their profit margins (which are currently at about 150% for this racquet... Insane...), and capitalise on the advantage of being able to try before you buy, and sell on the spot without shipping.

But what about other businesses?

Movie theatres. What advantage could they possibly sell us when most of us have home theatres with equal quality surround sound?

Clothing stores. What's the point of worrying about what other people in a store think of how you look, or whether the security guard wants to look into your bag, when all you need to know is your size to buy it cheaper online?

Shoes, sunglasses, groceries, book stores. How do these businesses adapt to our modern way of life? Should they even try?

Discuss.
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#2
I'm not doing your homework for you, TS, you knob.

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#3
Quote by moscaespañol
I'm not doing your homework for you, TS, you knob.

I'm not a highschool student. I'm just genuinely interested in what people think about the issue.
Quote by Machanix
We play guitar.... we're automatically on top of the world.

Life Is A Lemon And I Want My Money Back!

A Wasted Youth
Is Better By Far
Than A Wise And Productive Old Age

Good Girls Go To Heaven, But The Bad Girls Go Everywhere!
#9
Quote by instagata0
Now, in this instance, it's clear what this business should be doing to cope with the pressure of the internet. Lower their profit margins (which are currently at about 150% for this racquet... Insane...), and capitalise on the advantage of being able to try before you buy, and sell on the spot without shipping.



If it's so clear, why aren't they already doing it? The answer is they're not always capable of doing that - a lot of manufacturers set a standard price that dealers aren't allowed to go below so they can keep as many places selling their products as possible. And that price is usually lower for gigantic internet wholesale stores that only need to worry about domain name payments and paying a storehouse to hold the products, and buy the product in bulk, leaving what they don't sell immediately sitting around, than a brick-and-mortar store that needs to clear shelf space.

Movie theatres. What advantage could they possibly sell us when most of us have home theatres with equal quality surround sound?


If you're honestly telling me the only thing a movie theater does better is sound quality, you're fooling yourself.

Clothing stores. What's the point of worrying about what other people in a store think of how you look, or whether the security guard wants to look into your bag, when all you need to know is your size to buy it cheaper online?


...To make sure it's comfortable? Or that you like the way it looks in-person because stock photos aren't at all reliable? Or that the weird way the company measures sizes makes it so that one brand's Large is another's XL?
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Last edited by necrosis1193 at Jan 27, 2012,
#10
Quote by instagata0


But what about other businesses?

Movie theatres. What advantage could they possibly sell us when most of us have home theatres with equal quality surround sound?

Clothing stores. What's the point of worrying about what other people in a store think of how you look, or whether the security guard wants to look into your bag, when all you need to know is your size to buy it cheaper online?

Shoes, sunglasses, groceries, book stores. How do these businesses adapt to our modern way of life? Should they even try?

Discuss.


Movies: the truth is that most people don't have such a good theatre system, much less space for a large group of friends in one living room. You also can't see the movies as they're released (legally) which a lot of people like. Lastly, you should know that its considered a nice night out/pastime in western cultures, who would want to eliminate that completely?

Clothes: I'm quite self-conscious and yet i've never had this problem. They have change rooms usually, although if they didn't i would agree. Furthermore, sizes slightly vary amongst brands so i wouldn't feel too confident buying clothes on the internet, especially since returning them (if possible) would be more of a hassle. Girl fashion is more complex too so it wouldn't be the best for them either if they can't try them on.

My opinions:

Games: All game shops should have consoles where you can demo some of the games. Truth is that most of the people will just come in to play (which they'll enjoy) and not buy but you are attracting heaps more customers which can only be beneficial.

Supermarkets: should all be online and delivered. Not only would it be way easier but would probably be beneficial for buyers. Since they're not physically around all the products they'll be less prone to impulse buys and will probably save money themselves.
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#11
Quote by reidhasguitar
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I've never heard of them



So anyways about that business model..... well I'll conjur up something in a couple minutes
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#12
Quote by TOMMYB22

Supermarkets: should all be online and delivered. Not only would it be way easier but would probably be beneficial for buyers. Since they're not physically around all the products they'll be less prone to impulse buys and will probably save money themselves.

I disagree. Grocery stores can buy foods in a larger quantities, and often times distributors charge a cheaper price if they buy in large quantities. This is a form of second-degree price discrimination, which essentially states prices differ with the quantity. Shipping costs would also be more expensive because shipping trucks would need refrigerators to keep perishable food items from spoiling. It also requires the buyer to be at home when they deliver the items. One of the local grocery stores where I live has a home food shipping service. I can tell you that it is not cheap.