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It's easier to sell wholesale than retail. Retail sales come with chargebacks, customer support, dealing with hundreds of different consumer regulations, and d
by edent 3y ago
It's easier to sell wholesale than retail.
Retail sales come with chargebacks, customer support, dealing with hundreds of different consumer regulations, and different tax codes.
Small customers churn unpredictably. Large customers give you guaranteed and reliable cash-flow.
Look at the problems Twitter is having selling a $8/mo service. Do you want to deal with ranty customer complaints? Or do you want a direct client relationship between professional companies?
- huhtenberg 3y agoThe wholesale is easier IF they can find someone interested and IF they don't end up driving their user base away. > Small customers churn unpredictably. Large customers give you guaranteed and reliable cash-flow. Not if the user base is in hundreds of millions. There'd be ebb and flow, but nothing sudden. > Look at the problems Twitter is having selling a $8/mo service Their subscription offers no benefits, zero. It's basically a form of goodwill donation on users' part. > Do you want to deal with ranty customer complaints? Or do you want a direct client relationship between professional companies? It doesn't matter what I'd want, it's a question of if it makes sense from the business perspective and the retail business is very much worth it. The structure is different, but it works just fine even if there are chargebacks, complaints and what not. Look at WhatsApp before their acquisition - they charged $1/mo and they were awash in money.