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                                             Business  - LA Deal Price Comparisons
  Queen BeeHow LA Deal Prices Compare  l  How it Works  l  How to Start  l  HelpMap    
LA Deal Business Introduction LA Deal Business Introduction   
How LA Deal Prices compare with discounting & Daily Deals for businesses
  Product or Service Item value $100.00  Item value $100.00 Side panel
  Deal Discount More than 80%   50%
  Buyer's Price Less than $20.00   $50.00
  Buyer's Saving More than $80.00   $50.00
  Value of item to be charged $100.00   $50.00  
  Commissions / fees per sell * 7.5% LAT * $7.50 * 10% > 50% $5.00 > $25.00
  Marketing / Advertising 2.5% (part of LAT) ** $2.50 **   Additional cost?
  Customer Acquisition Cost 0.01% > 2.50% (LAT) $0.01 > $2.50 Discount per sale $50.00
  Cost of Deal before Overheads 7.5% * $7.50 * 55% > 75% $55.00 > $75.00
  Business Net Revenue on deal 92.5% $92.50 50% > 90% $25.00 > $45.00
           
  Overheads during deal Such as stock, power, rent, wages etc. as normal,
- may require additional staff
Such as stock, power, rent, wages etc. as normal,
- may require additional staff
           
Positives & Negatives * Businesses still continue to earn from 2.5% of the Deals
7.5% LAT from future commercial activity in their trading location
Discounting can clear inventory and gain new customers
based on lower prices, gains short term cash and less profit
           
    Gain full retail profits - less 7.5% LAT (Location Activity Tax)
means a known cost giving a business more profit
Discounts on products have higher in-store costs compared
to services with more Labour Market cost, so limiting options
           
    ** Marketing cost of 2.5% is direct one-on-one with local buyers
Cost is spent with buyers using viral offline & online methods
Marketing is often spent on national advertising denying
local economies a flow-on benefit with non-repeat buyers
           
    All payment processing is automatically completed
on the platform at no extra cost
Credit card processing costs may still be
debited from revenue
       
    LA Deal Prices can be a long-term part of a business
selling strategy that can continue without disruption
Discounting and daily deals are a "moment in time"
selling strategy that can be disruptive to profits if repeated
           
  Could deal be repeated?   Yes   Maybe
           
    LA deals can be repeated with the same products
without long term damage to the brand
Customers are nomadic and low prices can gain new
customers but low prices may be expected again
           
    Products can be displayed in-store with two prices,
normal retail list price and LA Deal Price Price.
Discounting in quiet times have benefits and can gain
revenue or clear stock but with minimal profit
           
    LA deals can be programmed to sell in advance prior
to quiet trading times to maintain revenue and staff
Discounting strategies can be unsustainable
if there is minimal or no margins
           
    LA deals can be used for old stock clearance but
still retaining full retail price
Discounting old stock can clear way for new stock
but with minimal margins
           
    LA deals can be used to sell large quantities
at full retail margins
Large quantities can be purchased at discounted prices
but discounting again to sell reduces the potential profits
           
    LA deals can have a faster turn-around time,
even prior to stock delivery
   
           
LA deals can provide a business with the way to
gain sales funds before items are sold - ideal to
'smooth' out cash flows and pay overheads
  Risk to Business   Low   High
           
           
   

Economies are built on the foundation of manufacturers, producers, wholesalers and retailers offering to sell products and services to a larger population of buyers.

Balancing the supply of products and services to the demand is the central piece in the mechanics of commerce.

The key strategy for a seller, no matter where they are in the supply chain, is to get this balance of supply flow to yield the maximum value and be able to sustain it, - 'by finding the sweet spot'.

Finding that value can sometimes require using discounts or resetting the full list price that both covers all overheads and importantly gains a profit margin.

It's a strategy that's as old as commerce itself!

The effect of using a direct discounting strategy that minimizes profits has a much bigger impact than the short term approach to 'survive' - it effects the volume of money that would flow from a business's pockets outward into local communities via wages and general overheads in services and supplies.

It travels further as it effects the local infrastructure in services provided by cities to their population paid for by taxes etc
- the less profits made by businesses reduces the amount of taxes and flow on that would normally go into the local and broader economies.

Discounting only 'kicks the can down the road' in the hope that the days in the future will be better.

This notion of these business cycles of trade are needed to get rid of the weak so the strong can survive is taught in the business schools as one of the foundation stones of commerce - that recessions are brought on by excessive values (inflation) and lower and lower demand defines the slow down.

This current slow down is not like previous recessions where the other side of the slow down could be seen and ways to get there could be managed by central banks using a simple interest rate to gear up an economy - this time the other side is not visible and interest rates are not a means of shifting gear, - as we can see with prices on the main living costs are still rising where normally they should be falling to gain traction with demand.

The continual increase of the basic costs of living and the stagnant position the populations are in in many countries could be termed as an 'Ecession' and not a Depression or a Recession as the world has never before been managed by electronic technology in the way it has over the last decade.

There appears to be 'two worlds' operating at the same time - one is the real world operating in manual mode where difficult times are being felt by many - and the other world is the electronic trading that continues to operate night and day providing ways to speculate and manipulate values that are not linked to the real world.

The cause of these difficult times have been brought on mainly by electronic technology and the platform developed by ComTechX has been designed to counter this increasing gap using electronic technology by giving business the tools to change the notion that some businesses need to fail so others can survive - the platform provides the mechanics to build demand using discounts and still giving sellers full profits through 'economies of scale' while maintaining the abilty to halt and inhibate the increase of the 'costs of living' by setting industry market prices in global, national and local economies.

                         " . . . it's possible to have sustainable growth in economies if you know how to approach it! "

 
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