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The New Economy of Scale

Ship to Hawaii and save!

This is a true story. 

We recently had a customer place an order that needed to be shipped to Hawaii. The order was for three (3) UltraBanner_One 33.5 Wide Base roll-up banner stands.

The customer called and expressed their concern over the anticipated shipping costs. Apparently their internal logistics department had received a rate quote from UPS to deliver said roll up banner stands to a local UPS STORE in Hawaii for $201.39 

The customer texted me a copy of the UPS rate quote they had received. I am including it right here (below). 

When we shipped these roll up banner stands – we also received a UPS rate quote.  But it was a lot less than $201.39 and 3 days faster.

I am inserting a copy of the customers invoice here as well. 

Our UltraBanner_One UPS shipping and logistics rate to Hawaii were only $55.00.

In this case our customer saved almost $150. A few years ago,  it would have been inconceivable to receive such deep discounts on shipping or freight – especially to Hawaii.

We are taking advantage of large networked economies of scale through our online infrastructure and automations. 

We see direct technical efficiencies increasing production and also lowering fixed costs. 

But we see our variable costs being reduced as well.  These reductions allow us to be very competitive in a marketplace that has become filled with a preponderance of me2 service providers. 

We want to offer a compelling reason for a potential new customer to consider and ultimately choose UltraBanner as their trusted partner.

Because the online display market is flooded with a plethora of products to choose from, it can be confusing to a first time consumer to sort and sift through 50+ different banner stands. 

And the overwhelming complexity of this market may have an anti-competitive effect because competition between firms is weaker when consumers are confused. 

Real competitive advantages (innovation, service, efficiencies) are being replaced with price points and there is blatant obfuscation taking place i.e., the advertised price does not include a printed banner.

Recent economic theory recognizes the possibility that companies might have incentives that intentionally confuse their consumers spuriously differentiating their products or using complex pricing schedules.

We just think its bad business because the inventory carrying costs, the complexities and lack of real product differentiation between SKUs is so granular that it makes no sense at all.

There are so many ‘lowest’ price products available right now that it almost feels like a commodity marketplace.

So our value proposition is: _One is simple. Simple is better. That resonates with our customer. We back that up with competitive pricing and add value thru the free shipping and our graphic design service innovation.

 

 

TL:DR

Simplified product offerings based on smart logistics and technologies delivers better value to consumers and allows real innovation to drive competitive advantage. 

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Bundle

UltraBanner_Three
5/5

$650

Three (3) big 36″ Premium_Wide Base banner stands with printed banners and choice of graphics!

1 Day Lead  Free Shipping

Bundle

UltraBanner_Office
4.5/5

$200

33.5″ Premium_Wide Base banner stand, printed banner and hanging Office Sign

1 Day Lead  Free Shipping

Bundle

UltraBanner_Wall 
5/5

$650

We bundled together a complete 10 foot fabric Wall display with our Design Service

1-2 Day Lead  Free Shipping 

Design service for banner stands

UltraBanner_Design
5/5

$99

One flat fee and unlimited design revisions for One (1) UltraBanner Stand

1-2 Day Lead-time

Design Service | Flat Fee | eCommerce

Website_Design
5/5

$700

Wordpress 5 page site, a blog and a one year hosting and maintenance plan

10 Day Lead-time

WordPress websites in the Google Cloud

Wordpress_Cloud 
5/5

$500

Account setup + one website hosting instance with SSL, Google tools.

5 Day Lead-time

Roll Up Banner Stand

33.5″ Standard Base
4.5/5

$120

Includes Printed Banner

1 Day Lead-time

Free Shipping

Roll Up Banner Stand

33.5″ Wide Base
5/5

$180

Includes Printed Banner

1 Day Lead-time

Free Shipping

Roll Up Banner Stand

36″ Wide Base
5/5

$250

Includes Printed Banner

1 Day Lead-time

Free Shipping

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