This is what I’d tell Doug Morris.
Imagine that you lived in some area of the world where wind did not exist. And you sold origami swans from a cart. And business was booming. Until one day the wind came. And it blew all of your swans away. And people caught them. Lots of people. And then some people unfolded them & figured out how to make their own. And one day you look around & you say, “Everyone has my swans!” Indeed, there are more swans in the park than you had ever made yourself. “If I could have made $14.99 for each of these, I would be so rich! But instead I’m broke!” Well, the truth of it is that everyone always appreciated your swans, but not enough to pay $14.99. Maybe $3.99? Or maybe $2.50? Who knows? That’s gonna take some research. And some experimentation. But there’s a magic price somewhere between $0 & $14.99 that plays to volume and maximizes profit. And that volume spills over into other revenue streams where you don’t have to discount your product. The wind has, in effect, given you a vision of what could be! Everyone with your swan in their lap or on their shoulder or in their pocket! And some of those people buying origami swan t-shirts & coffee mugs.
Luckily origami swans are fragile. They don’t last forever. And they don’t hold people’s attention too long. And, in truth, what got out is actually a pretty crappy version of what the origami swan could, should, & was envisioned to be. They were all pretty poor quality swans, actually. So all is not lost, but how can we get our business back into the black? Moreover, how can we get back into the black when your birds are being illegitimately copied & released into the wind by pirates?
Well, we could start by suing everyone who caught & kept a swan. There’s a lot of bad P.R. in that, though. And that alienates your clients… you kind of need to have a good, friendly disposition to sell origami birds from a cart & lawsuits don’t really project an image that’s particularly friendly. Plus it’s just a dumb idea. You could make the new birds out of lead. But then people wouldn’t be able to take them around… the portability is a big selling point. And why would someone want a to pay for a lead bird when they could catch a paper bird on the wind for free?
Well, maybe if we could just make a higher quality bird… maybe we could make one that’s 100% quality instead of 25% quality? Maybe most people would pay money for a higher quality turkey… maybe they’d even pay for a 100% quality swan, even though they already had a 25% one that they got for free! And maybe if we made more birds, maybe a falcon or a bald eagle! And we could offer consumers info and photos and videos and tour dates & all sorts of things you couldn’t get by just catching a knock-off on the wind. That could attract people. Oh you know what would be awesome? If we could use the wind to deliver the birds! If we could somehow fly the bird directly to the consumer, we wouldn’t have to spend all day pushing our cart through the park. I mean it’s a little inconvenient searching out an origami pirate or waiting for what you want to come along the wind. That would eliminate so much overhead! What if somehow we could make one bird & then have it copy itself practically for free and fly itself straight to the customer also for free!?!? We’d have to drop the price, of course… we already discovered that people want the birds but don’t agree with our valuation, if we eliminate all of the overhead we’d be insulting them to charge them full price. Especially if we were still selling that 25% quality version lol! It makes dropping the price make a lot more sense aside from the volume play, too! There’s way less risk. I mean… we can’t eliminate the overhead without dropping the price, really lol! It’s not even ethical.
I guess it’s just too bad we can’t make copies of our birds for free. And too bad the birds can’t fly themselves to the customers. And too bad flying straight to the customers conflicts with the idea of setting up an attractive store. If only we were trying to sell music online! lol Then we could set up an attractive shop that offers more primary (songs) & secondary (editorial filtering, videos, photos, bios, tour dates, etc) content than the pirates, we could sell the songs at a much higher quality than what is being pirated, we could price the songs competitively since our overhead is all but eliminated by exploiting the same “wind” (the internet) that set the songs free to begin with, we could make the store more convenient than not only our own old fashioned stores, but more convenient than getting the music from pirates by working with hardware & software vendors to create the ideal consumer experience, & we could exploit the growth in volume ushered in by the price drop by tying in other revenue streams like merchandise & concert tickets!
But alas, we’re selling origami birds. So we’re fucked. Those music guys don’t know how good they’ve got it.
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