Logos leads the way in innovative use of the Internet

20110620-100852.jpg One of the world’ leading leadership and business authors, Seth Goddin has highlighted an innovative book pricing mechanism used by Logos, a Bible software company.

In Goddin’s most recent blog post, titled Coordination, he discusses a new more collaborative approach to internet business, made possible by technology and cited Logos’ Community Pricing strategy as an example.

According to the Logos website, “Community Pricing offers some amazing deals on classic works in the field of biblical and theological studies. Thousands of Logos users have gotten books for less than the price of a latte or a gallon of gas (which is around $3.00 in Bellingham, Washington).”

Community Pricing works by online customers indicating on a graph how much they would be willing to pay for a specific title. At some point in the process enough customers and a high enough price cover production costs and the book can be released.

Logos explains it this way: “If it costs $4,000 to produce an electronic edition of a book, the costs can be covered by 4 people paying $1,000 each or by 1,000 people paying $4 each. The more likely scenario, though, is that no one wants to pay $1,000 and there aren’t 1,000 people interested in the title, even at $4. But there may be 200 people who would pay $20 each.

“Community Pricing is about finding the lowest price that covers the production costs.”

Customers bids are tracked on an online graph to provide some guidance as to how to bid and when a price is set, it is the lowest possible price which is paid by all bidders, even if they bid higher.

It is another example of how the book industry specifically and retail in general is changing due to digital communication.

Godson loves the approach because it eliminates waste and allows customers to collaborate with the supplier.
It is great to see a Christian company at the forefront of change.

Dear CheapBranded, thanks for your caring email…

My computer makes a doorbell sound, ‘ding-dong’, that used to be associated with Avon calling but is now better known as Windows default for a new email.

A shadowy preview of the new message appears in the lower right of my laptop screen and tells me it is from someone called ‘CheapBrandedViagra’.

(Just mentioning the word Viagra in my blog will send the spam protection software for this site into overdrive, such is the inter-connectedness – euphemism for lack of privacy – on the internet.)

A train of thought begins, thanks to my new friend CheapBranded, and I wonder if many of us realise how often we turn to the latest email, Facebook status, Twitter tweet or blog comment to fill deep emotional needs and stave of dreariness.

If our dearest friends are those who connect with us electronically, I have an amazing friend in CheapBranded as he has shown incredible determination to bypass not only my own spam protection, but that of my internet provider.

(I thought you should know I have worked with great commitment to avoid any unfortunate Viagra puns in this posting…)

But wait, perhaps CheapBranded is just that, not a caring friend who searched me out today with a loving email as my life faces precipitous change, but a cheap charlatan hoping to profit by pushing his brand at some perceived need.

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