This report by the US Commerce Department highlights cost savings of doing individual transactions over the Internet. The report was released in April of 1998, but many people are still unaware of its content.

http://www.ecommerce.gov/emerging.htm

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This is useful information to have when talking with clients.   Some examples:

Relative Costs of Booking Travel Using Traditional Methods vs. Using Online Methods

Method of Booking Airline Ticket                                            Cost

Travel agent books using a computer-reservation system       $8.00

Travel agent books directly with the airline                            $6.00

Customer books electronic ticket directly with the airline        $1.00

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 Relative Costs of Selling Insurance Using Traditional Methods vs. Using Online Methods

Method of Purchasing Insurance                                       Cost

Traditional agent costs                                                  $400 - $700

Internet Costs                                                               $200 - $350

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Relative Costs of Processing Bills Using Traditional Methods vs. Using Online Methods

Cost Process Using Traditional Methods    Cost To Process Using Online Method

Cost to Vendor $1.65 - $2.70                      $0.60 - $1.00

Cost to Customer   $0.42                                            $0

Cost to Bank $0.15 - $0.20                          $0.05 - $0.10

These figures ignore "Internet access costs".

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