j_b, thanks for your GREAT post.
Michelle <<Person to person auctions are worthwhile but applying the same model to business is not >>
j_b >>>Why not? Businesses are no more (and no less) price sensitive than individuals, although they are more sensitive to support issues. The type of equipment being auctioned need not be close out, could easily include support, and is already available in many cases through existing auctions. The advantage of the internet format is that the buyer never has to leave his office and doesn't have to play phone tag with the seller. It saves time, may save money, and is more efficient than many other buying formats.
I will agree with you here if you tell me that DEMAND can be created with certain vendors with onsl. It seems like you are saying that - if so, then you are correct, onsl is a valid medium for business-to-business commerce. I mean that, Dell can log in to the onsl site and request bids from vendors for some delivery of widgets at a certain time and place. Thats the way complex manufacturers need to work imo, Dell doesnt look to see who had how many cheap chips available and build from there - they need to create demand with their suppliers. Traditional auctions are not like this and thats what I am confused about.
The original reason behind moving away from consignments was to improve quality control over shipping, product quality and customer service, if I remember correctly. The drawback was that it added inventory control and obsolescence risks.
I dont understand this - you are saying a drawback to consignments was inventory and obsolescence? But these were consignments right ( = no inventory). I have this before but I dont see how obsolescence is any different from something sold through ebay. |
