Thanks!
624 karma · joined March 9, 2009
Thanks!
In the hope you see this, I have another question for you: in the startup world, what recourse is there against unethical competition? Some companies like Uber (esp. in Boston, NYC), are able to fight the good fight. Others, like Padmapper, are trying to do so.
But for the majority of companies, legal recourse (especially looking for legislative redress rather than establishing case law) is not an option. What should an ethical startup do when faced with acting unethically (yet similar to established competiton) or not existing?
Again, thank you for putting the price->ethics perspective so elegantly.
Does anyone have more information on the technology they use to generate these articles? I assume some sort of NLP in reverse (natural language generation, I guess?)
I also guess that tactics like these will erode user trust over time.
But most users are neither savvy nor concerned with things like this, in my experience. They may be annoyed with it, but the majority of people simply don't apply any meta-analysis to the sites they use, as we so often do here on HN.
I'd guess that they use these techniques because they are successful. So that's an interesting dilemma -- how can a (public) company decide which ethical path to take? If they don't use these techniques, they are doing their bottom line a disservice. If they do use them, they are crossing into a grey area of ethics.
What are companies (startups, especially) supposed to decide, between a slightly grey area success or an ethical failure?
PS - I know that's a bit of a false dichotomy, but making it a black-and-white issue simplifies it for discussion.
I see the analogy more like this -- if you place your mailbox on my property (your video on youtube), the unattended lawnbot moves the mailbox off their property.
If you focus on the value delivered, know your market (what people are paying your competition), and you can justify your higher-than-competition cost, you should be OK. Then double that, in your mind, because you're probably underselling yourself, and underestimating the cost of an employees time to even research these options [ie even the worst product delivers more value to the corp. than a continued search for a product.]
If your app is unique (or offers them a unique and important-to-them value prop), they have to trust you. If your product isn't unique, it must have some unique value props. Emphasize those! Strut your stuff, so to speak.
The attitude of many F500 purchasers is this: does it meet my criteria? Does it meet my budget? Then purchase. (Often, it's not the end-user [e.g. engineer, product manager, etc.] who makes the decision, but the purchasing agent.)
My only caveat is that corporate sales are tough. You may get a "yes, yes yes" all the way along from your POC, but they may not be the decision maker. It's easy to spend months purchasing a sale that you never had a chance at, but didn't know that. You have to judge by the conversation tone these things.
I wouldn't worry too much about the "do they trust my product" process. They trust you enough to ask for a price -- that means they're sizing you up for their budget. It's tough to think like a corporate buyer if you've never been one... but they have different incentives than consumer purchasers (who, after all, have to live with their purchases...)
Try to determine (estimate) their budget. You'd be surprised at how easily corporate employees will reveal budget.
Then charge a percentage of that budget.
Alternatively, try to figure out their internal cost estimates/budget for your component. Then double that.
You have a ton of negotiating room, but always do it as a percentage of what they were expecting to spend on the project/your component.
In my (light) experience, I've always at least doubled the amount of money coming in. Working with a corporation is a different beast than directly estimating value delivered / standard consumer stuff.
Is it because of the third-party component?
Using 0-100% of your "allocation" is one price. It's about 2x the cost to use 101-149%. 150-199% is an even higher rate. Etc.
Doesn't solve peak usage or distribution issues, but it's a (relatively) easy concept to understand. The detailed statements pretty clearly explain how much each "allocated unit" of energy costs.
I look up baseball player stats all the time, and the search on those site stinks. So I can just use the Felling Lucky on a query like "fangraphs jose bautista" and it will take me immediately to the page on the site I want. Saves me a click, since I'm usually pretty confident I know what the first result is.
If Sortfolio provides significant value to its paying users (customers), they won't lose a great proportion of their revenue on CC re-entry. Those who don't re-enter billing info are the people no longer getting regular value from the product.
Folks, this is a huge success! It's a company that bootstrapped themselves (and get some credit for many other bootstrappers, myself included) and found an exit strategy that's a win for all parties: they make money. The buyer has a business that provides real world value to its customers. And the customers will continue to receive their value for dollars spent. (How many articles bemoan buyouts that are "bad for original customers/early adopters/etc."?)
Let's just take a moment and appreciate a successful exit. Everyone wins -- the founders, the buyers, AND the customers.
I use priority inbox to filter out the messages that I ignore 99% of the time. For items I need to act on later, I use stars. With P.I., I can hide or show my Priority emails, my starred emails, and everything else. So things that are new can get my attention, or I can focus on finishing something up, etc.
I don't disagree that your system works effectively for you, but I think it's a silly statement to tell someone else they're doing it wrong (especially silly to capitalize the phrase Doing It Wrong.)
Say you had a "write/update infrequently, read many times" system profile with 10% disk space avail. It seems like Windows would store these files closer to each other on the drive, making reads more efficient.
Or would that be such a negligible difference that it's not worth mentioning?
E.g., I build a medical data entry system that is used 10x per doctor per day by the ER doctors in a hospital. There are 10 doctor-shifts each day. Each time they use my tool they save 5 minutes. My ROI calc would be 10 shifts * 10 usages per day * 5 minutes = 500 minutes of doctor time. At $200+ per hour, each day my internal tool saves $1,667 in doctor time.
Also, what if the mail component were used to hide/archive the virus? Hide a virus attachment from someone to themself, then have some bootstrap code (Outlook/email client exploit, perhaps) that loads the email archived virus back onto the comp.
The product or service in question provides a different amount of value to different purchasers. Especially in the realm of software. By setting a fixed price, the seller isn't capturing extra value that they provide to certain customers (e.g., enterprise software sales).
The incentive for the shrouding is more powerful than people's desires for simplicity in pricing.
It also seems like he's saying that "code" as an aesthetic principle is a very small part of your business. Your code is a means to an end (for your users), and does/should not hold much of your attention as an intrinsic ideal.
Yet when he died, the people of Columbia wept in the streets.
In addition to the lack of sustainability (adding back in the ecological issues), consumerism seems to drive a general cultural malaise wherein the people try to find meaning by buying crap, rather than living fulfilling lives.
IMO, consumerism is detrimental in the long run to people's mental health and the environment (and it's not sustainable); however, it has been shown to be a solid driver of economic growth.
You know what screams "bubble" to me? Everyone defending valuations by comparing the company du jour to Facebook.
It's like arguing that Webvan wasn't overvalued because Amazon.com has been successful. Unless a seriously meaningful connection between Facebook and Pinterest is drawn, the comparison is meaningless.
Addressing your second point: I also thought the comment was a snarky reply, wondering why someone would use gzip instead of deflate. The parent comment addressed, specifically, why they were using gzip on PNG, which is why I assumed the 3 character response was focused on the compression type, rather than whether to use it on PNGs.
Not doubting you, just wanted to add another data point.
Every business has a different decision to make. It feels like this thread is thinking of it like maximizing an equation (FindingMaxRevenueGivenPriceSensitivies()). Instead, some products lend themselves to low cost support; sell those more cheaply. Some products require insurance-like support contracts -- those are going to be enterprisey. Some products will lend well to cheap inexpensive versions and high end enterprise versions, without changing the product (the value prop is really high to a business, esp if it's a service that can automate out the cost of a person's salary).
This thread and the obsession with A/B testing result from a hyper focus, like you said, on finding local maxima. I think it's often useful to take a step back and find the high level factors and built a pricing model around that.
(Of course, nothing excuses you from talking to customers.)