Retail Changes

Folks,

More on Amazon... the 9 January 2006 edition of Forbes has a note from the
editor
explaining how Amazon and others are data mining to cross sell... and later on
page
59 a story on young Japanese booksellers thriving with the cross-sell strategy.
Of
course, USA is #1 in this strategy, look at Starbucks selling music with coffee.

(Forbes is the only biz mag I subscribe to, Amazon offers it cheap at

http://www.amazon.com/exec/obidos/tg/detail/-/B00005N7QA/
qid%3D1127347538/sr%3D8-1/ref%3Dpd%5Fbbs%5F1/104-9278078-
5627109?v=glance&s=magazines&n=507846 ...)

So, watch your retail customers... are they cross-sell savvy? Can you offer
cross-sell
advice? We've always benefitted from what retailers learn, and passed on what
we
learned to retailers... will amazon sell what its data-miners learn to
independents like
us to assist us in product direction?

Also, gift cards were big this year by many reports. Long ago I heard that 20%
of gift
cards are lost, so selling $100 worth of gift cards is an immediate 25% pure
profit to
the issuer. A neighbor of mine was part of the crew that developed the
monstrously
successful Starbuck's gift card, and he confirmed the figure, with a larcenous
grin
(and massive home remodelling I might add).

If left alone, you'll see everyone in gift cards, and a lowering of prices for
everyone as
competition gives this 25% pure profit back to the consumers. But it won't be
left
alone. Expect legislation and lawsuits eventually, and more compliance expense
and
more government oversight, making USA less competitive.

Incidently, of the $250 in gift cards this family received this Christmas, a $50
card
has been mislaid. Exactly 20%!

John

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