ETD: 964 Just-In-Time Payment System; What's e-mail?; SEO gone bad: BMW delisted from Google

E-Tailer's Digest etd_post at gapent.com
Mon Mar 20 20:45:47 GMT 2006


E-Tailer's Digest --- Everything for the  Retailer
  Issue #0964    March 21, 2006
  George Matyjewicz, Moderator         mailto:georgem at gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
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     CONTENTS
  [1]  Greetings
  [2]  Just-In-Time Payment System
  [3]  What's e-mail?
  [4]  SEO gone bad: BMW delisted from Google

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  [1]  Greetings.
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Hi All:

Alan Zell has updated information on the difficulties of a 
"Just-In-Time Payment System."  He also talks about the rate of sale 
and the difficulties POS apps have in calculating that important 
piece of management information.

I assume everybody has heard of search engine optimization 
(SEO).  BMW and Ricoh both used SEO tactics, and were caught and 
delisted by Google in Germany.  BMW used the ancient tactic of a 
doorway page whereby the page contained the term "gebrauchtwagen" 
(which means used car) 40 times. The user is then redirected to a 
different page which contains the same term only twice. This was done 
so that users searching for the term "used car" would be redirected 
to BMW's website instead of other car sales websites.   How on earth 
a big company like BMW (and Ricoh) could stoop so low is beyond me.

We have some more information from Jules Kaplan on "What's email?" 
from our last digest.  Interesting stats.

Gifts and Decorative Accessories is asking you to take part in their 
7th annual Retailer Comparison Survey. The results of this survey 
will be published in our June issue. All responses are combined; no 
individual responses will be identified or published.  The survey is here...
http://www.researchtodayonline.com/data/GDARetComp06.htm

Now, let's get to everything for the retailer.

Sincerely


George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, LLC
mailto:georgem at gapent.com
http://www.etailersdigest.com

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  [2]  Just-In-Time Payment System
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George, there are two aspects to the post about payment by POS systems.

1) The ratio of markup between "first-cost"and retail when 
importing.  Your calculations are a 16::1 ratio.  I believe that is 
higher than what is happening when bringing in goods to the US.  I 
see the guideline for determining US Suggested Retail Price (SRP) to 
be between 8 and 12 X first-cost.  Sure, if something can take a 
higher ratio, all the better.  From my experience it has been that an 
item lands in the US and 1.5 X first-cost.  If that is keystoned, it 
wholesales for 3X first-cost and a retailer would keystone that for 
6X first cost.  If a distributor is put in between, then the retail 
goes to either 10X  or 12 X depending on whether the distributor just 
warehouses and sells the goods or buys and resells the 
goods.  Remember, these are just guidelines, but I have found they 
are pretty close to what is being done.  In some instances, where 
items are "blind" the markups my be keystone plus (2.25 to 
2.5)  instead of keystone which would increase the ratio between 
first-cost and SRP.

2) The trouble with POS systems, is not in the payment routing, it is 
in the tracking of "rate of sale" i.e that it shows sales per month 
and to-date but one does not see a "horizontal" picture of what is 
selling when. For this reason, items are reordered when they do not 
or should not be reordered.

I am always fascinated with the comments on your newsletter.

Alan

Alan J. Zell, Ambassador Of Selling
Winner of the Murray Award for Marketing Excellence
Member, PNW Sales & Marketing Group
Member, Institute of Management Consultants
You are invited to learn about programs and services and
article on business topics that affect selling at www.sellingselling .com

+++ [Moderator's Comments] +++
Your ratios are more accurate.  The numbers I used were for example 
only.  I didn't want to confuse people with exact numbers.

My doctoral dissertation used the concept of a Just-In-Time Payment 
System which I based on a direct debit system, which had to use a 
standard currency that everybody will accept.  Contrary to what 
people may believe, the banking systems in a major part of the world 
is primitive.  Debit cards as we (and Europe and Australia) know them 
do not exist in other countries/continents.  So, a Just-In-Time 
Payment System would need a standard, readily-accepted payment 
type.  I chose gold.

You are correct about the rate of sale.  Too many retailers get in 
trouble ordering the way they do.  Yet, there are simple concepts 
that one can use to make life easier.

George

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  [3]  What's e-mail?
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Here are some facts we have observed over the last 3 years.

B2B - The number of email address for business is only about 50%

B2C -  The number of email address for consumers about 70%
              and if they are in the age group under 30 years the % if
              higher.

Our Online payment system www.inovium.com that we offer to business 
does relay heavily on email notification.

Our observation:  Many businesses do not want to give out email 
addresses for fear of spam.  Consumers are not as fearful as businesses.

Many businesses who have been around say for more than 10 years the 
database structure of their customers normally will not include an 
email address, but they will contain a fax number.  We have found 
that the number of B2B customers, the number of fax telephone numbers 
available is in the very high 90's %.  When it comes to consumers B2C 
the fax numbers are low, which is not surprising.

So how did we overcome the problem of sending invoice and payment 
data to our payees customers.  Easy - we have a procedure if an email 
address is not present, we send the data by fax.  If no email or fax 
information available on the payer, we send it to the senders fax  or 
as an attachment to the senders email address, so the payee can send 
the data out by good old snail mail.  Now we have 100% of 
communication with all customers of the payee.

Yours truly,

Jules Kaplan
Chairman / Founder
Inovium Corporation
702-254-6385   /  FAX  702-926-9629
http://www.inovium.com

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  [4]  SEO gone bad: BMW delisted from Google
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BMW (and Ricoh) have had their German web pages removed from Google 
because they have been using deceptive means to boost ranking, 
according to the search engine.

The delisting was announced on a blog (http://www.mattcutts.com/blog) 
by Google employee Matt Cutts, who warns that Google's team will 
continue ramping up its anti-spam efforts.

It its quality guidelines, Google says it won't accept 'cloaking'(or 
doorway pages), a technique webmasters use to hide code from a user 
or bot.  "To preserve the accuracy and quality of our search results, 
Google may temporarily or permanently ban from our index any sites or 
site authors that engage in tactics to distort their search 
rankings," say Google's guidelines.

A doorway page is full of keywords the site wants to be optimized for 
- however, as opposed to real pages, the doorway is only displayed to 
the search bot. Normal visitors are redirected to another page upon 
visit.  In BMW's case, their doorway page contained the term 
"gebrauchtwagen" (which means used car) 40 times. The user is then 
redirected to a different page which contains the same term only 
twice. This was done so that users searching for the term "used car" 
would be redirected to BMW's website instead of other car sales 
websites. Google specifically denounces doorway pages like this, 
because they contain misleading and deceptive content.

And that's what happened at BMW.de

As punishment, searching for terms like "BMW Germany" on Google will, 
for at least 30 days, no longer return a direct link to the car 
manufacturer's German website. And PageRank has set them to zero.

BMW refused to comment.

Cutts said Google will be paying a lot more attention to spam in 
other languages, whether it be German, French, Italian, Spanish or Chinese.

Details...
http://www.theregister.co.uk/2006/02/06/bmw_removed/
http://www.seoinsideout.com/blogs/34/bmw-site-delisted.html
http://slashdot.org/articles/06/02/05/235218.shtml
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