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Buying
Discount Software
The first questions that come to mind when you
see an advertisement for discount software is "Why?". Why are they
selling the software for a discount? What's wrong with it? It it a
scam?
The fact that a retailer is selling discount software does not
necessarily mean that there is a scam involved. It's probably
because you are being a bit cynical and your ever questioning mind
is running ahead of itself. There is probably nothing wrong with the
discount software at all.
In fact, online retailers have a massive financial advantage over
their brick and mortar competitors. They don't pay nearly the same
overheads. There is no rent to pay, no building maintenance, no
utility bills, and in many cases no wages to pay. An online retailer
can afford to sell discount software, and will most likely make the
same profit as their brick and mortar competitors who sell the
software at the full price.
Many software manufacturers have realized the massive savings that
can be made by selling software as a download rather than a physical
product. They are beginning to sell online versions of their
software programs at heavily discounted prices. Their low discount
software prices are possible because customers simply download the
software program onto their computer after the sales transaction is
complete. Their are no CD's involved, no fancy packaging, and no
shipping costs.
This represents a major savings to the software manufacturer, and in
more ways than are apparent. By producing downloadable discount
software, the software manufacturers also make big savings in the
wages they pay, because they no longer have to pay an employee to
source all the CD's. They also save on the CD cases, and they don't
have to pay an employee to create the fancy packaging, they don't
have to employ warehousing staff to store all the finished products.
All these savings can be passed onto you, the customer, because all
you have to do is complete an online credit card transaction and
download the discount software. You don't have to visit a physical
shop, you don't have to wait for a physical product to be delivered.
To accomplish this, all the software manufacturer requires is a
computer.
Another reason a retailer will sell discount software is because
they have decided to take less commission on each sale. In many
cases a software manufacturer will pay up to 50% to the reseller as
a commission. There is nothing stopping the reseller from deciding
to pass on the savings to their customer, by reducing the amount of
commission they keep. For example, the reseller might decide to only
keep a 25% commission and pass the other 25% on, as a saving to the
customer. Better to sell more and at the same time create good will
by selling at a discount!
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