Intermediary Customer Purchasing from the Product Producer

Guarantee Steps: The Guarantee steps include activities required for the Intermediary customer to keep the product or service in working order for the Final user

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

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

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

Reduce multiple costs

NO.	SIC	YEAR	EXAMPLE
1	4813	2003	Boston Communications does almost nothing but service the prepaid market for wireless carriers. It had been landing large carriers like Verizon as customers. Boston can send a voice message to alert pay-as-you-go customers when their time is about to run out. Boston makes money by charging clients 2 cents a minute on each call. That's down from 3 cents 18 months ago. Boston ended 2002 with nearly 3 million subscribers.
2	6141	2004	Alliance credit cards are issued by some 300 retailers, including Eddie Bauer and Pottery Barn. Alliance handles processing, billing, and servicing on those accounts.
3	3600	2002	Radio frequency identification systems (RFID) offer the following benefits over the old bar code systems: items don't have to be read one by one, items don't have to be near the reading mechanism, and a much wider variety and depth of information can be stored in the chips.
4	7374	2004	Alliance's utility service handles billing and processing services for utilities.
5	3669	2003	The Radio Frequency Identification system could drastically cut costs in the supply chain. The tags also help reduce theft because they automatically transmit information to a network. The chip gives companies an instant read on inventory, meaning retailers and suppliers can respond quickly to shifts in demand, avoid spoilage, and prevent over-and under stocking.
6	3600	2004	With the SoftwareToGo machine there are no more shelves lined with bulky boxes. Each title is always in stock. The latest upgrades are sent to the machine over the internet. The machine is also less vulnerable to thieves.

<<Return to Guarantee Steps