ravisunny2
Posts: 1,053 +11
Ever hear of the ‘pinch factor’ ?
Well, I think I’ve coined it, unless someone else wishes to be credited, and rightfully so.
After all is said and done, its not patents & royalties, but plain simple good business sense, that fetches in the moolha.
One can understand ‘materials cost’, ‘manuf. Cost’, ‘shipping cost’ etc. But what about cost of developing software ?
Sure people make the software, and they get paid, and resources are used etc. etc. etc.
But its plain dumb to ignore plain common sense.
The gentleman who started McDonalds, had plenty of common sense.
Do you get the drift ?
He decided to make things affordable ( and of course maintain quality).
The basic idea was ‘if it pinches the pocket too much, it won’t sell well’.
When a guy, in the good old US of A, has to shell out 50 bucks, he feels a certain pinch.
When a guy in India, for instance, has to shell out upwards of 2 grand (for the same thing), he feels the bite.
The conversion factor, of around 50, looks all neat & dandy on bits of government paper. But ask the common man what the factor of 50 means to him. Can’t quite imagine it ? Try to reverse the roles.
When is someone going to pump some sense into the hard boiled business leaders ?
Can some one get them to contemplate, for a brief moment, about a thing called the ‘pinch factor’ ?
I don’t have hard figures & stats ( as yet), but I have spent some time thinking ‘ if it cost xxxxx, I’d snap it up’.
My personal feeling is, that for a lot of things, the ‘pinch factor’ is around 10 (ten).
What that means is, that if I had to shell out 500 of my bucks, I’d feel the same pinch, that you would in the USA for $50.
And lots of folks would accept that pinch as a worthwhile one.
If the ‘pinch factor’ was used, the customers base would go up astronomically, and the resulting profits would go up many-fold.
Well I don’t expect all to agree with these ideas, and for sure I am going to attract a lot of flak.
Bye,
Ravi Banthia
Certa Bonum Certamen
Well, I think I’ve coined it, unless someone else wishes to be credited, and rightfully so.
After all is said and done, its not patents & royalties, but plain simple good business sense, that fetches in the moolha.
One can understand ‘materials cost’, ‘manuf. Cost’, ‘shipping cost’ etc. But what about cost of developing software ?
Sure people make the software, and they get paid, and resources are used etc. etc. etc.
But its plain dumb to ignore plain common sense.
The gentleman who started McDonalds, had plenty of common sense.
Do you get the drift ?
He decided to make things affordable ( and of course maintain quality).
The basic idea was ‘if it pinches the pocket too much, it won’t sell well’.
When a guy, in the good old US of A, has to shell out 50 bucks, he feels a certain pinch.
When a guy in India, for instance, has to shell out upwards of 2 grand (for the same thing), he feels the bite.
The conversion factor, of around 50, looks all neat & dandy on bits of government paper. But ask the common man what the factor of 50 means to him. Can’t quite imagine it ? Try to reverse the roles.
When is someone going to pump some sense into the hard boiled business leaders ?
Can some one get them to contemplate, for a brief moment, about a thing called the ‘pinch factor’ ?
I don’t have hard figures & stats ( as yet), but I have spent some time thinking ‘ if it cost xxxxx, I’d snap it up’.
My personal feeling is, that for a lot of things, the ‘pinch factor’ is around 10 (ten).
What that means is, that if I had to shell out 500 of my bucks, I’d feel the same pinch, that you would in the USA for $50.
And lots of folks would accept that pinch as a worthwhile one.
If the ‘pinch factor’ was used, the customers base would go up astronomically, and the resulting profits would go up many-fold.
Well I don’t expect all to agree with these ideas, and for sure I am going to attract a lot of flak.
Bye,
Ravi Banthia
Certa Bonum Certamen