We have all played the game of lowering prices in one area in order to get a job which would bring large profits in another area. And everyone has competitors who try to survive on the slimmest of margins. In the past, we have combated these problems in a variety of ways, primarily relying on quality and relationship selling. Now, a whole new era of digital data enters the stage. To see an example of how online commoditization works, observe the quick printing industry.
Customers post jobs and vendors bid for the work.
Cost is the defining issue. Be honest with yourself about this. Regardless of how relationship oriented we might be, most of us would certainly consider at least giving the new vendor a trial. Almost everyone I spoke with believes commoditization, in one form or another, is something with which we must contend. The onslaught of digital printers and software make all the prints look the same.