Any transaction, there must be a game, and where there is a game, there must be a cost.
The cost is divided into two parts: the cost of the user and the cost of the platform.
The bounded rationality of users will pursue the lowest personal cost, and the platform will pay more attention to profit, that is, the input-output ratio.
The user's cost is in accordance company email list with the decision-making process: generating interest (search cost) - collecting information (identifying information cost) - evaluating value (comparing cost) - making a decision (bargaining cost, decision cost, payment cost) - executing contract cost (time cost, energy cost)
The cost of the platform is based on the transaction process (part of the reference is from Mr. Shaonan):
1. Pre-purchase matching costs
First of all, it is necessary to ensure a certain amount of business costs (business team business costs and labor costs) for demand (buyers) and supply (businesses).
In particular, to ensure the growth of supply, the previous article also talked about how important supply is. From the data results, supply can drive demand.
The second is how to effectively match supply and demand, that is, how to distribute the R&D costs and business costs caused by the distribution of orders.
The more types (such as second-hand goods on 58.com), the higher the immediacy requirements (such as Didi Taxi), the sparser the supply and demand (house decoration), the more difficult it will be to match, and the higher the transaction cost paid by the platform.
2. Negotiating costs and pricing costs in purchasing
Let’s talk about bargaining company email list costs first. When there is no fixed price for goods, there will be huge bargaining costs.
The negotiating cost itself is the user's, but it will lead to low transaction efficiency on the platform, and both the demand and supply sides will suffer from it.
Therefore, most commodities are priced (determined prices), but there are also transaction scenarios that are suitable for bargaining.
Such as bargaining in vegetable markets and stalls, if the price is forced, business may not be better.
Speaking of pricing. Behind every price you can see is the final price determined by the platform after a lot of research and trial and error.
The pricing of a single item needs to consider fixed and elastic costs.
Fixed costs include commodity costs, logistics costs, tax costs, and other entity costs.
Flexible costs include company email list seasonality, geography, supply and demand changes, and additional service charges (such as labor).