Intermediary Customer Purchasing from the Product Producer

Return Steps: The Return steps include activities required to return defective product to the supplier. These activities include the work to deliver the product to the supplier and receive credit for the returned product.

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

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

a.
Reduce the level of payment for use of the product

NO.	SIC	YEAR	EXAMPLE
1	5961	1997	Andy's Garage (www.andysgarage.com) is a site on the World Wide Web that is wholly owned and operated by Fingerhut. The site mainly offers merchandise that Fingerhut marks out of stock from its numerous catalogs and normally sells to a liquidator.
2	5122	2005	The drug wholesale industry is dominated by three firms: Amerisource, Cardinal Health, and Mckesson. Those three control 90% of the business in the U.S. There's no differentiation in the service they provide. The new inventory management agreements put a squeeze on wholesalers' margins. To counteract the impact, wholesalers are trying to find a new way to make money. They call it fee for service. They want drug makers to pay for each routine service the wholesaler provides – from packing and labeling to special handling and product returns. The wholesalers are not having much luck getting manufacturers to follow along, though.
3	5712	2005	The new remodeling efforts by hotels, mainly the installation of flat-panel TVs, have allowed hotel-room-furniture resellers to profit. Old-style TVs at Universal Hotel Liquidators are priced at $39, and armoires and minibars are being rapidly purchased by college students and down-market hotels.
4	3711	2005	To reignite sluggish sales the car industry is aggressively returning to an old strategy of pushing people to lease instead of buy. This year marks the first time in four years that car makers spent more money on leasing incentives than on traditional financial deals. General Motors Corp. began a pilot program with three car models in which customers in Boston, Atlanta and all of California can return their car in the first 12,000 miles and forget the lease with no penalty except for loss of the down payment which is a minimum of $1,500.

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