February 23, 2015

The Disappearing Middle

In the past, value was added in being the Middle Man – the one who connects large scale supply with volume demand.

Some supply chains even have multiple Middle Men, each adding their margin to the cost of goods.

However in today’s economy where everyone is connected, technology now advantages suppliers to bypass middle men and connect directly with their end consumers – giving the double consumer benefit of lowering prices by removing middle margins and offering customers support direct from the source.

Technology is effectively eroding, replacing (and even improving upon) the value once offered by the Middle Man.

This disappearing of the middle will over time lead brands to one of two inevitable choices: go big or go small.

For those with the pockets of Amazon, go big and keep reinvesting the savings made by eliminating the middle to reach everyone with everything.

For the rest of us, avoid the middle, go small and deliver the best for the least for the most.

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About Adam Sugihto

Founder of Intentional - a specialist Pay Per Click Advertising Agency based in Melbourne, Australia. Member of Perry Marshall's Marketing Mastermind since 2011. Google Adwords Qualified Individual since 2010.

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Connection Economics