Cut-Out the Middleman
industries the traditional way to get to your customers
is to go through an intermediary such as
distributor, wholesaler, broker, or agent. In this
model you will bypass the intermediaries and sell
directly to your customers. A good example of this
is the service provided by amazon.com and
Printers that let authors become publishers by
printing and selling their own books directly
customers without going through Publishers, and
Other Examples of the Cut-Out the Middleman Business Model
Author (Publisher): An
author that decides to beomce his/her own publishing company by
writing, publishing and selling books directly to customers by using
a PRINTING service such as
Amazon Direct Publishing Service (ADP),
LULU, etc. Offer customers the
opportunity to buy hard cover, soft cover and e-book versions of the
book. Offer quick delivery (overnight, 2-day air, etc.).
Offer discounts on special holidays to attract more customers.
Generate revenues by providing taxi service by using the Uber app.
Through this app revenues will be shared by the company and Uber.
Customers won't have to worry about paying with cash anymore.
Payments will be made through the app. Customers will benefit
from knowing that they're utilizing a safe and professional service
that they can rate.
This business will generate reveneus by growing it's own flowers and
selling it directly to consumers. It will cut out the
middleman by not buying flowers from an outside source and not
relying on distributors to get it's products to other retailers
where they can sell it to consumers. This will allow the
company to offer competitive discounts and quick delivery service to
a limited geographic area.