The digital age has become synonymous with many things. Gaming, videos of cats, social media and more. However, for the savvy consumer, the internet has been fantastic for one thing: deals. By either cutting out the middleman or using the power of big data to collate and compare the best deals, anyone with a way to access the world wide web can find a better deal than they would do in the confines of their local stores. Naturally, when we think of finding a bargain, we think about shopping and the big brand names like eBay and Amazon. However, the idea of “shopping” for a bargain doesn’t necessarily start and stop with retail.
For example, in the financial world, small margins can make a huge difference. Because of this, a trader will always want the best price on a commodity they can find. In the past, this meant being part of a major trading house or having a contact that was. In today’s world, certain online trading sites offer something known as direct market access. For a small fee, direct market access trading sites not only give access to bank rates rather than consumer rates, but variable fees based on your activity. So, if you’re more active, you’ll pay a smaller percentage of commission. Without the help of the internet, this level of service would be reserved for the very richest traders. However, anyone can find a better price if they use the power of the internet.
Creating an Even Playing Field Creates Better Prices
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It’s a similar story in the gaming world. Take a network like Steam as an example. As well as being a community for gamers, the site allows you to download content and play. In the first instance, gaming companies can reduce the cost of their products and offer players better prices because online services doesn’t require much hardware. What we mean by this is that a game that’s available through Steam doesn’t require a disk, any packaging or shipping. These things cost money and, in turn, increase the price of the end product.
Another reason the Steam network has allowed gamers to find a better deal is that it puts independent developers on an equal footing with the industry leaders. This dynamic has two important ramifications for players. Firstly, they get access to games that may have otherwise fallen by the wayside. Secondly, competition drives down prices. When a single company dominates a market, it has the power to set its own prices. However, the moment it faces any sort of competition, the dominant force is forced to adjust. By pitching independent games alongside established products, Steam is essentially helping to improve the process.
The Internet Doesn’t Force You into a Decision
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In essence, this is something the internet as a whole has done. Because it’s a platform that everyone can access, the big companies can’t have things their own way. Whether it’s relative unknowns on YouTube or fashion designers building up a following on Instagram, anyone with an online following can generate some business. This, in turn, diversifies the market and gives consumers more options and, importantly, better deals. Indeed, this is one of the reasons why British consumers now spend more online than any other country. According to the UK Cards Association, the average online spend per household in the UK in 2015 was £4,611 which beat the US, Australia and Norway. When you walk down the high street, two things are happening:
1. You’re only seeing major companies that can afford to rent the buildings.
2. Competition is either limited or so spaced out that you can’t compare products in an efficient way.
The internet removes both of these limitations. By doing this, everyone gets an improved service and, as we’ve said, a better overall experience. Because you aren’t being forced into accepting the only thing to hand, you can make your money go further. Whether this dynamic is present in the trading world, gaming or the retail sector, it’s there and that’s why digital access provides us with direct access to the best deals.