analysis

50 Shades Of Shut The Hell Up

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So, yes, we all know the story.  Woman writes Twilight fanfic.  Twilight fanfic gets repurposed as erotica series known as “50 Shades Of Grey”.  Woman makes money.  People make fun of situation.

Really the only problem as a progeek for me is the latter one – the mockery.

From what I hear about “50 Shades of Grey” is, to put it mildly, is rather purple and the content is may disturb some.  It’s not Shakespeare or Pratchett, and there’s elements that sound rather squicky.  But really the only criticism that seems relevant to me may be some of these quality issues, and even then there’s only so much I can say because I actually watch films like “2 Headed Shark Attack.”*

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Valve Made Money Via Free

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TechDirt has a great analysis of a larger analysis on Valve’s profitability, specifically how TF2 worked when it went free.  The major lessons are research, connecting with customers, make it so pay isn’t needed to play, and give people a good reason to buy (not a negative).  In short, it appears to be a giant  mass of common sense, which of course makes it rare and remarkable.

Well worth reading.

Also, what I’d add here is that Valve’s approaches are not based on adversity, they’re based on building alliances and providing value (as noted “piracy is a service problem.”).  This is a great model that is also common sense, but begs the question why common sense seems so alien today.  I’d argue that once companies get big enough to throw their weight around, and gain enough “age” to feel they’re fixtures, there’s a risk of abuse.

– Steven Savage

 

The Loss Of Loss Leaders?

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Remember "Loss Leaders" in the world of tech and gizmos?  Have CD's and DVD's that are marked down insanely low, hope you sell, and get people to buy other stuff.  It's a historical practice, and probably one that doesn't get enough attention.

This was something Best Buy and some electronic stories try or tried because they want you to buy expensive stuff. In fact, last time I headed to a Best Buy, I thought about the fact I see a lot less CD's and DVD's there.*  Sure there were some, but not many, and they seemed to be cheap stuff, recent stuff, and expensive sets.  I'm guessing the latter is the only guaranteed profit maker.

Loss leaders aren't working like they used to.

Come to think of it, the answer seems pretty obvious: The Internet and The Economy.

First let's address the economy, which sucks and means we want to buy less stuff, especially stuff that we really don't need.  Sure it's marked down, but if we don't really need it anyway, then why buy it in tough times?  The economy clearly didn't help.

But then there's the Internet.

The obvious way the Internet kills off Loss Leaders is that simply you can get their contents online through Netflix, discounted sellers, used copies, or simple piracy.  Why buy them at a store when you can do it cheaper or free?

But there's other reasons.  Previews of things seen on the internet, reviews, and so forth can make you more picky and better informed.  You're used to looking for, well, crap, used to researching.  You know what you want, you seek it, and you're less likely to be tempted at a store.

Put it all together, and there's a loss of Loss Leaders.  We don't want to buy them, we don't need them.

I have to wonder how many companies have to struggle with this loss . . .

– Steven Savage

 

* In my defense, I now usually go to Fry's.