jitdistributors.com Blog

The ‘hustle’ mentality is preventing many Jamaican businesses from embracing the Internet.

It will take much longer for Jamaican businesses to capitalize on the opportunities that are made possible by the Internet, particularly e-commerce. One definition of e-commerce is ‘Using electronic information technologies on the Internet to allow direct selling and automatic processing of purchases between parties’. We have become accustomed to a situation where we do not publish our prices for fear that we will assist our competitors in ‘under selling us’. This concept has been carried onto the Website of many Jamaican businesses. They will display the products in all its details but when it comes to pricing information, you are asked to call a telephone number for details. This is not e-commerce. To be categorized as e-commerce, the complete transaction must be automated i.e. the sale or purchase must be conducted on the Internet. This cannot be done if we refuse to publish prices.

The problem we have with publishing prices is that most Jamaican businesses are not concerned with making a ‘reasonable’ profit. They want to make ’super-profits’ and this is a direct consequence of the ‘get rich quick’ mentality that permeates the society. Therefore selling prices are not fixed based on an accounting calculation that accumulates ‘costs’ to which is added a ‘reasonable’ profit but rather it is based on an accumulation of costs PLUS an additional amount that the potential customer is perceived to be able to pay. This flexible price policy is reminiscent of what take place on a ‘used car lot’. This is just a ‘hustle’ that has proven disadvantageous for people who are appear to be ‘well-off’ or ‘not from around here’ based on the salesman’s quick evaluation of the potential client. As a result of this it is not uncommon for ’society’ people to ‘dress down’ when they are visiting certain market places, not only out of fear of being targeted for robbery but also in attempt to ensure that they are treated just like the ‘other man’.

This mentality will have to change if we are to take advantage of some of the real opportunities that the Internet offers. This will not be easy as it requires what amounts to a ‘change of business culture’. Let us not be naïve, this is not the only hindrance to e-commerce in Jamaica today. The costs of computers and the cost of accessing the Internet are much too high. Many households cannot afford to buy a computer not to mention accessing the Internet even with combined income. This forces some people to use their employer’s computer and time to conduct their personal e-commerce transactions. This is not good for business and is a direct consequence of the short-sightedness of computer resellers and ISP’s who do not know how to generate sales to keep their businesses profitable.

E-commerce offers real advantages to businesses. A few of these have been listed below. These have been taken from the Website http://www.isos.com.my/ecommerce/advantages.htm and are as follows;

Catalog flexibility and Online fast updating

• Direct “link” capabilities to content information and visual displays already existing on other client web site. You can update your E-Catalog anytime, whether it’s adding new products, or adjusting prices, without the expense and time of a traditional print catalog.
  
• Extensive search capabilities by item, corporate name, division name, location, manufacturer, partner, price or any other specified need.
  

Shrinks the Competition Gap

• Reduced marketing/advertising expenses, compete on equal footing with much bigger companies; easily compete on quality, price, and availability.
  

Unlimited Market Place and Business Access Which Extend Customer Base

• The Internet gives customers the opportunity to browse and shop at their convenience and at their place. They can access your services from home, office, or on the road, 24 hours a day, 7 days a week.
  
• The Internet allows you to reach people around the world, offering your products to a global customer base.
  

A 24 Hour Store Reduced Sale Cycle

• Reduce unnecessary phone calls and mailings.
  

Lower Cost of Doing Business

• Reduce inventory, employees, purchasing costs, order processing costs associated with faxing, phone calls, and data entry, and even eliminate physical stores. Reduce transaction costs.
  

Eliminate Middlemen

• Sell directly to your customers.
  

Easier Business Administration

• With right software, store inventory levels, shipping and receiving logs, and other business administration tasks can be automatically stored, categorized and updated in real-time, and accessed on demand.
  

Frees Your Staff

• Reduce customer service and sales support.
  

Customers will love it

• Gives customers control of sales process. Builds loyalty.
  

More Efficient Business Relationships

• Better way to deal with dealers and suppliers.
  

Workflow automation

• Shipping, real time inventory accounting system which adjusts stock levels and site, location availability instantaneously
  
• Secured, automated registration verification, account entry and transaction authorization features
  
• Automated RFP and RTQ features for vendor bid development and selection.
  
• Banking and accounting features customized for pre-approved third party direct sales, vendor, consignment or internal transfer transactions.
  

Secure Payment Systems

• Recent advancements in payment technologies allow encrypted, secure payment online.
  

There are also disadvantages for using e-commerce but that discussion is not for this forum. I intend only to show that we will not reap the benefits of the technological changes that are taking place around us if we do not change our mentality. The hustle approach must stop.