Kogan CEO Ruslan Kogan has unveiled LivePrice, an innovative pricing model that offers customers savings if they buy their product earlier in the production process, helping Kogan’s cash flow, and saving customers money if they can pre-order.
Kogan LivePrice cuts out the hidden cost of finance in the production process, instead of investors financing production (who expect a return on their investment) Kogan LivePrice lets customers fund production directly, cutting out the investor and lowering the purchase cost.
Kogan increases the ‘LivePrice’ gradually throughout the manufacturing and shipping process based on a number of factors until it eventually reaches Kogan’s direct to consumer retail site price.
Ruslan Kogan said that LivePrice was a result of the Kogan mantra that there is always a better way to create and deliver.
“With LivePrice we have harnessed the openness of the Internet to cut out the hidden cost of finance built into price tags of all goods. Kogan ‘LivePrice’ gives the power of choice back to the consumer and will change the way we shop.
“Even though no other manufacturers or retailers are up front about it; every product you purchase has a cost of finance included in its price. Credit can be given by a supplier, bank, or silent investor, but they all have one thing in common – they want a huge return on the money invested into the production cycle.
“The LivePrice system means that a shopper buying a product when it’s in stock will still get our already market-leading price, but by joining us early on in the production cycle, shoppers can benefit from further discounts that are completely unheard of.
Ruslan Kogan in launching LivePrice took a stab at retailers calling for GST to be imposed on online orders from overseas.
“Other retailers are out there asking their Governments for new taxes and regulations to help entrench their market positions. At Kogan we are focused on inventing new ways to create and sell the best value products to more shoppers around the world.
Kogan LivePrice is already active on the recently launched Kogan UK site and will soon be rolled out across Australia and the world, as Kogan continues its bid to use the openness and transparency of the Internet to put more power in the hands of shoppers all around the world.
Below is a video of how LivePrice works;