mattront

"In a market where there are no barriers to entry (i.e. perfectly competitive), the long-term price will tend to zero."

Yes, the price will gravitate towards zero because of competition or due to the fact that end users would not be willing to pay for the product anyway (who would use Facebook if it wouldn't be free?). But the marginal cost of such operation would not be zero and costs would have to be covered by other sources (VC funding, advertising, premium services...)

Agree. Hosting and bandwidth costs are just a part of the total costs of running an online service, besides development, customer support and marketing costs.

"In other words, if the cost to serve a customer (support aside) is zero, the long-term price of the product in the market will be zero (because of competitive pressure)."

I can't think of any large scale operation where the cost to serve a customer is zero. Sites like Google, Facebook and YouTube have massive operational expenses that they struggle to cover with aggressive advertising.

Of course, the freemium model works very well for many companies. Nevertheless - "zero marginal cost" is an illusion.

"Inconsistent startups write 3.4 times more lines of code in the Discovery stage and 2.25 times more lines of code in the Efficiency stage."

This is interesting. Either inconsistent startups (startups that are more likely to fail) over-do development - or - they tackle problems that are more complex and thus require more code. The implication of the later point is that startups working on difficult problems are more likely to make mistakes (like premature scaling) and fail.

Impressive design and effects, but that didn't help me to better understand the instructions. It was more of a distraction.

Recent Groupon acquisitions are in line with this strategy. For example, Zappedy (acquired in July 2011), is an online CRM platform for small businesses.

http://techcrunch.com/2011/07/17/zappedy-acquired-by-groupon...

Yes. We did a lot of client web development work (Pinegrow evolved from there) and we often work with designers who need us to turn their designs into a functional site. Many designers are not coders and have no interest in dealing with nuances of html, css and javascript. They are very interested in Pinegrow as a development tool, backed up by good technical customer support.

Yes, fluid designs are possible. We are also working on option to specify media based rules for individual elements including serving different image resolutions to different devices. The main idea is to have one set of content that is then published in appropriate form to individual publishing channels.

In addition to DIY market we also have those designers who until now had to hire a programmer to turn their designs into a functional website (with cms or without). Thanks for the landing video suggestion!

There was a delay with sending form submissions through email. I disabled it, works much better now.

Thanks for your feedback! Our unique value proposition is that designers can build custom site templates quickly, without coding. Most existing solutions (Weebly for example) require coding html / css templates for implementing custom site design. Our target market are designers who don't have a lot of coding skills or those who don't want to deal with coding for smaller projects.

There is video - click on watch video above the main title. Maybe should be more obvious?