Could you give me an example of the niche this type of model works for?
One who sells printers, and also the toner (which is included in first purchase), would not necessarily get his customers purchase toner from him every 12 months.
It's google (or Bing ?) that will provide (to at least 50% customers) a list of 10 vendors (page 1) from whom to buy. Yes, If the original seller will be in the list, he would have a better chance to get the deal again.
Funny thing is that they are not the lowest price on a lot of things. Makes me wonder.
@gpilling, I don't know the specifics, but in some industries it's no wonder. It's the assurance the potential buyer needs to get prior to buying, that he is guaranteed to pay the lowest price. Not too many actually use this to get their discount.