Most states require car manufacturers to sell through dealers. Even if you order directly from the factory, the order must go through the car dealer. This expensive dealer distribution system adds about 30 percent to the cost of cars.

Until 1984, people bought home computers the way they buy cars, through retail dealers like Best Buy. Then, a 19-year-old named Michael Dell offered to sell computers directly to the public, by mail order. His recipe for success: build the computer exactly to the customer’s specifications, after the customer orders it; cut out the middleman and dramatically cut the price.

In 1985, Dell’s first year in operation, his company grossed more than $73 million. Now, many people buy their computers directly from the manufacturer, while others who prefer a different shopping experience buy from a local computer store. Computer prices have dropped dramatically, and Dell is a multibillion dollar company.