Seth Godin wrote a very thought provoking blog post this morning.
Unusual as that may be (wink), it got me thinking about the notion of a potential strategy of some organizations to decrease “Product 1/2 Life” in order to sustain their prosperity but “forcing” their loyal customers to buy more frequently.
This is, in part, the same level of thinking that got the economy where it is now. It plays on the insatiability of many humans when it comes to “Keeping up with the Jones’s,” always having the latest and greatest, and desire for ultimate convenience.
Here’s the rub . . . I believe there’s also such a thing as an “Organizational 1/2 Life” that this level of thinking ALSO decreases. No matter how big the company, this recession has demonstrated very little compassion for companies who break trust with their loyal customers.
Here’s a link to Seth’s post
Getting the OS Right (For the iphone, the ipad and the kindle)
I wrote the following thoughts to Seth:
You’re right on!
and I have a theory . . . It’s more about shortening product 1/2 life, so the next model can do more of this stuff . . . and the model after that can do even more . . . and so on – Creating the $ to keep the Monster Org floating.
Same thing happened with the ipod – Bought mine and loved it so much, I bought 2 for my kids 3 months later . . . Their’s looks EXACTLY the same as mine but has an FM receiver and external speaker that mine doesn’t.
I think they’re being stingy, and I don’t think that’s a long term solution because it breaks trust.
You can’t hold out on the good stuff, then force your public to buy again to get it any more.
Besides . . . Virtually everything on your list could be handled with the capabilities of Google Spreadsheet and a fairly competent programmer.
BTW – I think Google Docs is taking the high road – Free – EASY to use (Excel irks me every time I use it)
This “Money Machine Tactic is not going to pay Microsoft and Apple much longer as it has been in recent years – BIG companies have 1/2 life(s) also.
Seth did not completely agree with my notion, but it got me thinking further . . .
I guess it’s the “Conspiracy Theorist” within me 🙂
At some point, you’ve gotta figure out how to charge less and deliver MORE (Service & Quality) . . . We’re doing just this at Pareto Realty for both our agents and our House Buying and selling clients in an environment in which many other Real Estate Firms are charging MORE in the form of additional admin fees etc.