Comments on: Inspired by the internet http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/ Debunking Entrepreneurship Sat, 26 Jun 2010 14:38:35 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: Nithya Dayal http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/comment-page-1/#comment-2965 Nithya Dayal Thu, 22 Apr 2010 11:34:40 +0000 http://www.nithyadayal.com/blog/?p=24#comment-2965 @Sandip I definitely wasn't trying to convey through this post that web models are applicable in the real world. I was rather looking at it this way: What sounds impossible in the real world is the norm in the virtual world, even when the cost of adding customers or serving them cannot be dismissed as marginal. @Amar True. Most businesses don't charge because they are scared. Scared because they don't add any real value. @Sandip I definitely wasn’t trying to convey through this post that web models are applicable in the real world. I was rather looking at it this way: What sounds impossible in the real world is the norm in the virtual world, even when the cost of adding customers or serving them cannot be dismissed as marginal.

@Amar True. Most businesses don’t charge because they are scared. Scared because they don’t add any real value.

]]> By: Sandip http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/comment-page-1/#comment-2964 Sandip Wed, 21 Apr 2010 08:44:47 +0000 http://www.nithyadayal.com/blog/?p=24#comment-2964 One of the few 'Brick n mortar' companies that have managed to sustain the 'Freemium' model is Gillette - selling cheap razors with expensive blades. However there is fundamental difference in the economics of a product and service company, which dictates the pricing models. That being the marginal cost: every 'offering' that has more value than the marginal offering is priced at a premium that is just enough to off-set its value over the marginal offering. So, in your example, if restaurants could exponentially (or some other function)increase parking fees based on the minutes spent in the restaurant (directly proportional to the value of the offering, quite literally :)) then they will be able to offset their costs. In any case, the end result is the same - customers have to pay one way or the other. And I dont think the mass-market outreach of the Internet can be replicated for a local business, so it inevitably comes down to the same thing. And this conundrum increases its appeal... One of the few ‘Brick n mortar’ companies that have managed to sustain the ‘Freemium’ model is Gillette – selling cheap razors with expensive blades. However there is fundamental difference in the economics of a product and service company, which dictates the pricing models. That being the marginal cost: every ‘offering’ that has more value than the marginal offering is priced at a premium that is just enough to off-set its value over the marginal offering. So, in your example, if restaurants could exponentially (or some other function)increase parking fees based on the minutes spent in the restaurant (directly proportional to the value of the offering, quite literally :) ) then they will be able to offset their costs. In any case, the end result is the same – customers have to pay one way or the other. And I dont think the mass-market outreach of the Internet can be replicated for a local business, so it inevitably comes down to the same thing. And this conundrum increases its appeal…

]]> By: amar http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/comment-page-1/#comment-2818 amar Mon, 01 Jun 2009 20:25:50 +0000 http://www.nithyadayal.com/blog/?p=24#comment-2818 May be it's the easy and plentiful alternatives that are available to the user on the internet that keep most of these sites away from ever daring to charge anything. Their customers will simply go away, if they charge a service fee. You also seem to overlook the fact that many so called business/services on the net are just redundant clones and offer no real value proposition. May be it’s the easy and plentiful alternatives that are available to the user on the internet that keep most of these sites away from ever daring to charge anything. Their customers will simply go away, if they charge a service fee. You also seem to overlook the fact that many so called business/services on the net are just redundant clones and offer no real value proposition.

]]> By: HS SANDESH http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/comment-page-1/#comment-2679 HS SANDESH Wed, 25 Mar 2009 17:51:45 +0000 http://www.nithyadayal.com/blog/?p=24#comment-2679 Hi. Awesome blog with great content. I'm seriously in love with the way you write articles. I mean i can imagine the way your mind things when you sit in from of your computer and start pouring your heart. Anyways I'm HS Sandesh from Bangalore and it would be my privilege to have your link on my site. Can we exchange Links..?? Have Fun..CHEERS "message.blog.co.in" Hi. Awesome blog with great content. I’m seriously in love with the way you write articles. I mean i can imagine the way your mind things when you sit in from of your computer and start pouring your heart. Anyways I’m HS Sandesh from Bangalore and it would be my privilege to have your link on my site. Can we exchange Links..?? Have Fun..CHEERS

“message.blog.co.in”

]]> By: Shrinidhi Hande http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/comment-page-1/#comment-2627 Shrinidhi Hande Fri, 06 Mar 2009 08:25:38 +0000 http://www.nithyadayal.com/blog/?p=24#comment-2627 You're expecting an environment wherein people pay for everything, say visiting a website. Just trying to imagine my monthly bill if that starts happening... I feel many sites which have proven content/service to offer are already on a pay and use mode. Since no one has complete command over internet to dictate "ok, from tomorrow no one offers anything free..." rest will take a long time to catch up and be able to command a price... Just my opinion... You’re expecting an environment wherein people pay for everything, say visiting a website. Just trying to imagine my monthly bill if that starts happening…

I feel many sites which have proven content/service to offer are already on a pay and use mode. Since no one has complete command over internet to dictate “ok, from tomorrow no one offers anything free…” rest will take a long time to catch up and be able to command a price…

Just my opinion…

]]> By: Nithya Dayal http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/comment-page-1/#comment-2606 Nithya Dayal Fri, 20 Feb 2009 17:18:07 +0000 http://www.nithyadayal.com/blog/?p=24#comment-2606 Srinidhi, The above examples that you stated still make sense cos HP and the also the restaurants you mentioned at the end of the day sell something which they set out to sell. What baffles me is the expectation of a 'free service' on the internet which has become a norm. As I mentioned in the post I am waiting for the 'attention economy' thing to unfold. Srinidhi, The above examples that you stated still make sense cos HP and the also the restaurants you mentioned at the end of the day sell something which they set out to sell.

What baffles me is the expectation of a ‘free service’ on the internet which has become a norm. As I mentioned in the post I am waiting for the ‘attention economy’ thing to unfold.

]]> By: Shrinidhi Hande http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/comment-page-1/#comment-2604 Shrinidhi Hande Thu, 19 Feb 2009 05:06:38 +0000 http://www.nithyadayal.com/blog/?p=24#comment-2604 Well, Yes. But HP has been doing something similar... THey sell printers very cheap and earn by selling overpriced cartridges.. It is also a old time joke which says "Son, I don't earn anything by selling them, I earn when they come back for repairs" Most of the highway hotel serve free food to bus driver and conductors, for bringing customers by stopping the bus in front of their hotel... Sarcasm and reality apart, we never know when someone would make this impossible possible... Well, Yes.

But HP has been doing something similar… THey sell printers very cheap and earn by selling overpriced cartridges..

It is also a old time joke which says “Son, I don’t earn anything by selling them, I earn when they come back for repairs”

Most of the highway hotel serve free food to bus driver and conductors, for bringing customers by stopping the bus in front of their hotel…

Sarcasm and reality apart, we never know when someone would make this impossible possible…

]]> By: Nithya Dayal http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/comment-page-1/#comment-2601 Nithya Dayal Wed, 18 Feb 2009 04:46:44 +0000 http://www.nithyadayal.com/blog/?p=24#comment-2601 Srinidhi! You just about managed to miss my sarcasm on the subject:) Srinidhi! You just about managed to miss my sarcasm on the subject:)

]]> By: Shrinidhi Hande http://www.nithyadayal.com/blog/2009/01/12/inspired-by-the-internet/comment-page-1/#comment-2600 Shrinidhi Hande Wed, 18 Feb 2009 04:28:19 +0000 http://www.nithyadayal.com/blog/?p=24#comment-2600 Good thought, but the stated ideas doesn't sound feasible in india atleast for this moment... Restaurants- most of us do not tip and even if we tip that is less than 4-5% of bill amount... Can we run a restaurant in that amount? Automobiles: What if customers go to some other mechanic/shop for maintenance? Big Bazaar: Majority of customers come by auto public transport... For someone who buys a Rs 30,000 TV (it is free) how much do you expect to recover from parking fee? Long back I'd suggested that public toilets should be made free and operating cost should be recovered by displaying ads... Many didn't find it feasible The idea may work in some cases- like giving sim card free and charging for monthly usage... Btb if you're starting a restaurant/market with above business model tell me first.. I'll be your regular customer... Good thought, but the stated ideas doesn’t sound feasible in india atleast for this moment…

Restaurants- most of us do not tip and even if we tip that is less than 4-5% of bill amount… Can we run a restaurant in that amount?

Automobiles: What if customers go to some other mechanic/shop for maintenance?

Big Bazaar: Majority of customers come by auto public transport… For someone who buys a Rs 30,000 TV (it is free) how much do you expect to recover from parking fee?

Long back I’d suggested that public toilets should be made free and operating cost should be recovered by displaying ads… Many didn’t find it feasible

The idea may work in some cases- like giving sim card free and charging for monthly usage…

Btb if you’re starting a restaurant/market with above business model tell me first.. I’ll be your regular customer…

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