{"id":561,"date":"2012-09-30T12:00:52","date_gmt":"2012-09-30T19:00:52","guid":{"rendered":"http:\/\/www.onvural.net\/melih\/thoughts\/?p=561"},"modified":"2012-09-30T12:00:52","modified_gmt":"2012-09-30T19:00:52","slug":"prices-that-dont-race-to-zero-re-posted-from-rainbow-hat-guy","status":"publish","type":"post","link":"https:\/\/www.onvural.net\/melih\/builder\/prices-that-dont-race-to-zero-re-posted-from-rainbow-hat-guy\/","title":{"rendered":"Prices that don&#8217;t race to zero (re-posted from Rainbow Hat Guy)"},"content":{"rendered":"<p>An old friend and I had dinner the other night, and he told me that a friend of his was starting a company focused on rating the customer service of online sites. Why? E-commerce sites can no longer compete on price or shipping, and so customer service has become the new frontier.<\/p>\n<p>That&#8217;s a fascinating concept in the &#8220;free&#8221; economy world of Web2.0. I don&#8217;t, however, think that that&#8217;s sustainable anymore, and more and more examples are proving as much.<\/p>\n<p>I&#8217;ve just read an article on TechCrunch about <a href=\"http:\/\/techcrunch.com\/2011\/08\/12\/yc-funded-picplum-beautiful-prints-automatically-mailed-for-you\/\">PicPlum<\/a>.\u00c2\u00a0Their whole premise is that the best photographs are worth paying more for. Would you rather send many, poor quality photos, or 15 high-quality photos? I, personally, would like to have a budget per month, and mix and match size and quality against that budget. If you&#8217;re going to ask me to pay more, then give me complete customizability. I&#8217;m not sure if that&#8217;s where they&#8217;re going with their concept, but I like the fact that PicPlum is trying to bring value to something that WalMart has tried to turn into a commodity.<\/p>\n<p>One might call that the Apple strategy in that Apple has brought value back to the laptop market where Dell had turned it into a commodity item. IBM, with their ThinkPad division, tried and failed, and so it&#8217;s not easy said, easy done.<\/p>\n<p>What&#8217;s more, content generators are finding themselves moving away from free as well. The NYTimes showed really solid online subscription numbers this last quarter, and Fred Wilson&#8217;s blog about <a href=\"http:\/\/www.avc.com\/a_vc\/2011\/08\/on-porous-paywalls.html\">porous paywalls<\/a> shows that a new medium may be forming for content. This is definitely a good sign for folks who believe in the value of journalism, of which I am one, and is another simple example of the reversal of the trend towards free.<\/p>\n<p>Even clones of the early Web2.0 services such as del.icio.us (<a href=\"http:\/\/pinboard.in\/\">Pinboard<\/a>) and flickr (<a href=\"http:\/\/500px.com\/\">500px<\/a>) are starting to, and able to, charge.<\/p>\n<p>I wonder if this is a function of the consumer getting wiser, or if it&#8217;s a matter of businesses realizing that the race to zero is no longer a sustainable business model. It could simply be that the indestructible revenue model which was Internet ads doesn&#8217;t actually make for a good experience and good web service, and we are now demanding both from our web applications.<\/p>\n<p>Regardless of the why, I think it&#8217;s pretty clear that the race to zero has stopped, and that in its place the Web is seeing a resurgence of opportunity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An old friend and I had dinner the other night, and he told me that a friend of his was starting a company focused on rating the customer service of online sites. Why? E-commerce sites can no longer compete on price or shipping, and so customer service has become the new frontier. That&#8217;s a fascinating [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1,2],"tags":[],"class_list":["post-561","post","type-post","status-publish","format-standard","hentry","category-builder","category-rainbow-hat-guy-transition"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8fAIx-93","jetpack_likes_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.onvural.net\/melih\/builder\/wp-json\/wp\/v2\/posts\/561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.onvural.net\/melih\/builder\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.onvural.net\/melih\/builder\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.onvural.net\/melih\/builder\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.onvural.net\/melih\/builder\/wp-json\/wp\/v2\/comments?post=561"}],"version-history":[{"count":0,"href":"https:\/\/www.onvural.net\/melih\/builder\/wp-json\/wp\/v2\/posts\/561\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.onvural.net\/melih\/builder\/wp-json\/wp\/v2\/media?parent=561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.onvural.net\/melih\/builder\/wp-json\/wp\/v2\/categories?post=561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.onvural.net\/melih\/builder\/wp-json\/wp\/v2\/tags?post=561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}