Brick N Mortar Model
A “brick and mortar business” is a term used mainly on the Internet to differentiate between companies that are based solely online, and those that have a real-world counterpart. A brick and mortar business has a commercial address “made ofbrick and mortar” where customers can transact face-to-face. The company might also have an online presence.
Of the many different business models such as e-commerce, home businesses,mail order, and brick and mortar, there are advantages and disadvantages to each. Some types of businesses are best served by, or even require a hands-on base of operations to provide their products or services, such as auto repair and healthcare; and many companies benefit from augmenting this model with an online presence. But prior to the Internet, a brick and mortar business was standard for nearly any company that sold goods. Today the business model is expanding to include e-commerce, in many cases foregoing the need of a commercial building all together. The reason lies behind the main disadvantage of a brick and mortar business: overhead.
Overhead is the cost of doing business whether or not a sale is made.Commercial property, whether rented, leased or bought, adds considerable overhead to a brick and mortar business. All else being equal, the cost of property, employees, insurance, and taxes are far greater for brick and mortars than for Internet-based businesses.
When e-commerce was new, however, some consumers were wary of doing business with companies that did not have a commercial address. This brings us to one of the main advantages of a brick and mortar business: customer security.
Many consumers believe a company isn’t as likely to fold overnight or disappear if it has a commercial base of operations. A physical storefront with a customer service counter and accountable manager served the traditional business model. The largest segments of all populations were raised with this model. Though the attitude is almost certainly
Of the many different business models such as e-commerce, home businesses,mail order, and brick and mortar, there are advantages and disadvantages to each. Some types of businesses are best served by, or even require a hands-on base of operations to provide their products or services, such as auto repair and healthcare; and many companies benefit from augmenting this model with an online presence. But prior to the Internet, a brick and mortar business was standard for nearly any company that sold goods. Today the business model is expanding to include e-commerce, in many cases foregoing the need of a commercial building all together. The reason lies behind the main disadvantage of a brick and mortar business: overhead.
Overhead is the cost of doing business whether or not a sale is made.Commercial property, whether rented, leased or bought, adds considerable overhead to a brick and mortar business. All else being equal, the cost of property, employees, insurance, and taxes are far greater for brick and mortars than for Internet-based businesses.
When e-commerce was new, however, some consumers were wary of doing business with companies that did not have a commercial address. This brings us to one of the main advantages of a brick and mortar business: customer security.
Many consumers believe a company isn’t as likely to fold overnight or disappear if it has a commercial base of operations. A physical storefront with a customer service counter and accountable manager served the traditional business model. The largest segments of all populations were raised with this model. Though the attitude is almost certainly