You often hear about the value of cutting out the middle man in a business transaction. The idea behind this is that if you limit the number of people involved in a transaction then you reduce costs for the customer. However, this isn’t always the case. If the middle man is the most efficient person for a particular part of the job then it can be cost-effective to have a middle man even if it does mean that more people need to get paid.

Take, for example, the mobile aggregator as a middle man. If you own a company and you want to use text messaging to bill your customers then you need a way to do so. This involves working with the mobile phone companies. That can be a hassle for a business owner. It requires working with all of the different mobile companies. A business owner who is trying to negotiate SMS billing issues with the mobile phone companies may have to take a lot of time to do this, wasting his own time and driving up costs. However, he can work with a mobile aggregator who serves as the middle man for that communication. The mobile aggregator communicates with all of the different mobile companies and the business owner only needs to deal with the mobile aggregator. This is time-efficient and ends up being cost-efficient as well.

It’s true that cutting out the middle man can be a great way to reduce costs for your business. If it does, then it can lower prices for customers. However, this isn’t always the case. Think carefully about whether or not you can do the job of your middle man in a cost-effective, time-efficient manner. If not then it might be cheaper for everyone to just pay the middle man.

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