Now, because of the nature of the business we have chosen, our company does not require any channel intermediaries. We generate revenue by providing a service, which is to bring student buyers and student sellers together from within an individual college campus (so that each party receives the best possible price on the item being exchanged). We are not selling any physical goods, eliminating the need for intermediaries and enabling us to establish a direct marketing channel in which the consumers interact directly with the company. A direct marketing channel provides us with many benefits. Without the need for intermediaries, there is no possibility of running into issues such as channel conflicts. And because our product goes directly to the consumer, we have absolute control over everything from the customers' experience to the pricing. This also proves to be beneficial for our clients since they do not end up having to pay for the additional fees that would be necessary to compensate any intermediaries. .
When evaluating the alternatives, we found that the most cost-efficient and effective way for our company to operate and our consumers to utilize our services is to do so via the Internet. The Internet allows StudentXChange.com to keep its operational costs as well as its startup costs at a minimum. As a result, this enables us to offer our services at a very affordable rate. If instead we were to place student ads in a school newspaper or magazine, the associated costs would be much higher for both our company and our clientele. In addition, using a website for our company's distribution would make our services conveniently accessible to college students across the nation and would also make it relatively easy to maintain, update, and incorporate feedback to enhance the customer's experience. What makes our method of distribution stand out from our online competitors, though, is that delivery is optional.
