Although I am a SI regular, I am a NAVR lurker who must interject into this conversation.
The potential for internet sales in all areas of commerce is uncalculable. As business consolidations occur daily, factors such as economy of scale make the internet THE viable alternative.
One such consolidation is occuring as we speak in the insurance industry. Just as walking into a bank and actually talking to a person (teller) has quickly become a thing of the past via the utilization of both the ATM and PC banking, the local insurance agent's office will become an antique.
Insurance rates are plummetting nationwide as new insurance Cos. are skiming the top customers from the rolls of allstate, State Farm etc. Would you insure thru a website and an 800 number to save up to 45% of your insurance rates. As most customers pay premiums to insurance compaines quarterly, yet rarely file a claim - the overwhelming answer is yes.
And, just as catalog sales of Victoria's Secrets, Lands' End, LL Bean went from an idea to the standard in many homes, buying on the net will save money, increase earnings, and improve margins for business who will no longer need for an office/shop in everytown. Also, as the web is more interactive, the potential to demonstrate/answer questions/update product/etc. is quicker, better and less costly.
And, remember when evaluating any of these models, for children growing up with a computer, this is not "high-tech" - like microwaves, cable, VCRs, CDs, playstation, sega, and nitendo, this is the only way they will know how to shop.
Of course, every child and every business (or business model) will not be guaranteed success. Yet, I have felt for years that the combination of the high disposable income of children -especially young girls- with the falling box prices, and shopping on the net, will make the right company billions.
As an example, the sharper image is a perfect fit for the net. Their typical buyer, has a computer, is online, is not scared of a net credit card purchase, etc.
Insurance agents around the country need to start to think of becoming "reskilled" - their days are numbered
IMHO
Stephen |
