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What Is A Cash & Carry Business Model?: Features
What Is A Cash & Carry Business Model?: Features
"Cash-and-carry" refers to a business model that virtually excludes all credit transactions, requiring
up-front payment for all goods and services. Companies with a cash-and-carry business model
eliminate accounts receivable from their books and are able to match all sales with actual cash
receipts. Cash-and-carry operations were the norm in times long past, and this business model has
been making a slow resurgence over the past few years.
Features
Although the core philosophy of a cash-and-carry business model is to accept only hard currency for goods,
these types of businesses may still accept credit under specific circumstances. Local cash-and-carry businesses
may extend lines of credit to frequent, local customers with whom the business owner can deal personally in
the event of nonpayment. A cash-and-carry business model is designed to reduce the risks associated with
offering lenient credit to any customer who walks in the door, but business owners can still use their discretion
History
Several generations of Americans have been born into a world where credit cards are accepted nearly
anywhere, but this was not always the case. A hard-currency transaction is the most time-honored trade
method next to a barter system. Currency has been used by countless civilizations throughout history and
Technology has influenced the rapid growth and acceptance of consumer credit purchases. Communications
and database technology allow credit card companies to facilitate transactions anywhere in the world while
Considerations
Cash-and-carry operations do not always have a significant impact on consumers' spending habits, since credit
cards are technically a form of up-front payment in the eyes of businesses. Credit card companies pay
businesses promptly for their customers' transactions, regardless of whether the customer pays his bill. This
creates a situation in which people can still make purchases on credit at cash-and-carry business by switching
favorable interest rates and fee structures and tougher decision criteria for new accounts. This can happen in
times of economic turmoil or record levels of credit card default. When this happens, consumers can find
themselves face to face with the realities of cash-and-carry as their personal credit lines dry up or become too
burdensome.
The Future
The credit market is in a constant state of evolution as it responds to events and issues in the larger
macroeconomic and political landscape of nations around the world. If a large number of companies adopt
cash-and-carry business models, and credit card companies adopt stricter policies, the situation could force
consumers to make more frugal spending decisions, working within a budget and saving money for months or
years before making large purchases. It is also possible, however, that if credit card companies adopt generous
and liberal credit policies, the vicious cycle of debt and default may continue.
Effects
A return to a predominantly cash-and-carry marketplace could have a number of negative economic effects.
Gross domestic product figures could decline as a result of reduced purchasing power and wiser spending
habits. Unemployment could also rise to unprecedented levels due to leaner income statements in all industries.
Brand Management - Meaning and
Important Concepts
Brand management begins with having a thorough knowledge of the term “brand”. It includes
developing a promise, making that promise and maintaining it. It means defining the brand, positioning
the brand, and delivering the brand. Brand management is nothing but an art of creating and sustaining
the brand. Branding makes customers committed to your business. A strong brand differentiates your
products from the competitors. It gives a quality image to your business.
Brand management includes managing the tangible and intangible characteristics of brand. In
case of product brands, the tangibles include the product itself, price, packaging, etc. While in case of
service brands, the tangibles include the customers’ experience. The intangibles include emotional
connections with the product / service.
Branding is assembling of various marketing mix medium into a whole so as to give you an identity. It is
nothing but capturing your customers mind with your brand name. It gives an image of an experienced,
huge and reliable business.
It is all about capturing the niche market for your product / service and about creating a confidence in the
current and prospective customers’ minds that you are the unique solution to their problem.
The aim of branding is to convey brand message vividly, create customer loyalty, persuade the buyer for
the product, and establish an emotional connectivity with the customers. Branding forms customer
perceptions about the product. It should raise customer expectations about the product. The primary aim
of branding is to create differentiation.
Strong brands reduce customers’ perceived monetary, social and safety risks in buying goods/services.
The customers can better imagine the intangible goods with the help of brand name. Strong brand
organizations have a high market share. The brand should be given good support so that it can sustain
itself in long run. It is essential to manage all brands and build brand equity over a period of time. Here
comes importance and usefulness of brand management. Brand management helps in building a
corporate image. A brand manager has to oversee overall brand performance. A successful brand can
only be created if the brand management system is competent.
Definition of Brand
Brand Name
Brand Attributes
Brand Positioning
Brand Identity
Brand Image
Brand Identity vs Brand Image
Brand Personality
Brand Awareness
Brand Loyalty
Brand Association
Building a Brand
Brand Equity
Brand Extension
Co-branding