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Binding Customers with the Internet

Let's say you're a food distributor, and you develop a web-based cash register for your customers and offer it at little or no cost. It just happens to have your products programmed in, and supports automatic re-ordering from you. Support can be outsourced, so you don't need to get into the software business.

Once adopted, that customer is bound with golden handcuffs. Competitors will be forced to offer more than just a lower price. This principal can be applied to most industries, so in the future, I believe most small business software will be free or very low cost, because it will be in someone's best interest to provide it.

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