In an interview with Leo Muller, founder of the Mazzal diamond trading platform, he explains why they decided to stop charging people for using their services.
Question: Why did you make Mazzal a free service?
Answer: We want to open the market for more people. Having an entrance price for brokers and jewelry retailers is a threshold that many don’t dare to step over. Giving our service for free will attract new buyers into the diamond markets.
Question: But what about the sellers, they must understand the value of your service?
Answer: That is right, but we don’t want to be more of the same, we want to be different. Our main goal was never to create another B2B diamond trading platform. We want to increase diamond sales to the end consumer by making the road from the mine to your ring shorter. We are using our platform to promote our retail extensions.
Question: How long will it be until you start charging for your services like everyone else?
Answer: As I said, we don’t want to be the same, we want to be different. We don’t have any plans for charging our customers. But in order to give some guarantee to our loyal customers, we won’t charge customers that remain active forever. They can enjoy our services for free as long as we keep operating.
Question: What is an active subscriber?
Answer: For diamond dealers and manufacturers they have to upload their stock at least once a week. For jewelers and brokers, they must access our website at least once a month. As long as they do that their subscription will remain active and they don’t have to pay, also not in the future.
Question: So, if you log into Mazzal.net once a month it will remain free forever?
Answer: That is right, I think that is only fair.
Question: Now you give away your service for free, how can you keep your business running like that?
Answer: We are not giving our service away, we allow people to use our services for free. That is not the same. We did have to make some changes to our service in order to be able to make it free. Our service level today is not the same it was a few months ago. We have to keep our staff hours low, at least for now. There will also be more paid advertising and we will introduce commission based services down the road.
Question: You are going to add commission to your diamonds?
Answer: For starters not, but we are looking to add a low commission of $10 per sale for diamonds over $2400. At the moment this is only a thought. Our focus will first of all be to grow our network and increase the activity on our platform. Advertising will be our prime income, but listing your diamonds is also advertising.
In our retail extensions we already add commission, at the moment a very high markup, but as we are growing this is where it is fair to add some commission because once there is a sale, everyone involved benefits from that.
Question: Thank you, this sounds like a very exciting development
Answer: We are very excited indeed. We already have some new business deals that are taking shape and we already see increased activity now that our services are free. For us, this is just the beginning and we expect to see many more beautiful things coming up.
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