Intermediary Customer Purchasing from the Product Producer

Sell Steps: Sell steps include the activities Intermediary customers take in selling and delivering the product to their customers. These activities include their own customer recruitment and product delivery.

B.
Resources: Reduce resources required for the use of the product

1. Money – Reduce the money the customer uses with the product

b. Reduce the customer's spending on People, Purchases or Capital costs the customer uses with the product itself

Capital costs

No.	SIC	Year	Note
1	2111	1992	RJR produced smaller packages of many of its products to cater to convenience outlets and drugstores..
2	3589	2001	Redback's products sit at the on- and off-ramps to e-commerce highways. For instance, Redback's Subscriber Management System gives service providers a way to manage broadband services such as DSL. In essence, SMS enables service providers to set up toll roads for spacing traffic and billing.
3	3843	2004	Procter & Gamble Co. began battling Colgate-Palmolive Co. with a long restructuring program that ended last year. It cut costs and jobs and plowed the savings into marketing and product development. The company came out with new products ; upgraded Pampers, Crest Whitestrips, Swiffer mops and fancier Tide detergents. All these new products crowded out competitors' products and P&G used money saved from its restructuring program to advertise those new items on television, and discount them on store shelves.
4	4813	2001	KDDI phones work in many U.S. cities, as well as South Korea, Hong Kong, and Australia. The company wants to expand coverage as more innovative cell phones emerge. DoCoMo's phones only work in Japan and could take awhile to start working in Europe.
5	4813	2003	Sonus's voice-over-Internet-protocol technology chops up voice transmissions into digital packets and routes hundreds of calls simultaneously through the same port. Instead of carrying the telephone call over a dedicated line, each digitized packet seeks out the most efficient route over multiple lines. The packets are then reassembled at the destination point. The result is that fewer telephone ports are needed to direct calls, resulting in less equipment to service and smaller real-estate needs. Sonus says its equipment typically takes up about one-fifth of the floor space of traditional switches. The digital transmissions also create more available bandwidth on the telephone network. In addition, by transmitting calls digitally using Internet protocol, telephone carriers can more easily offer advanced services, such as video conferencing.
6	5000	2002	Distributors like Tech Data supply products from many vendors to the thousands of value-added resellers that work closely with companies of all sizes. Dell and HP don't have the resources to provide those services beyond the biggest technology buyers. And direct sellers focus on selling well-understood products like personal computers.
7	5122	2001	D&K's drug distribution business buys, breaks up, and drops off over 25,000 different products for pharmacies.
8	7379	2002	Nexpansion will provide Web services and in-store kiosks for the aisle program. It will process all of the online orders and handle product fulfillment and shipping.

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