3 ms·

"This has pretty frightening implications for the state of consumer goods, if industrial goods are already going this direction." This scenario has played out

by cc439 10y ago

"This has pretty frightening implications for the state of consumer goods, if industrial goods are already going this direction." This scenario has played out thousands of times in the manufacturing/industrial sector over the past 30 years. The end result is that the vendor trying to lock their customers in to a service contract loses out to whoever makes a remotely comparable product that isn't locked in within a decade. The sales generated by virtue of being the "non-bullshit" vendor far outweigh the profits associated by following the market leader into the world of walled gardens.

chii 10y ago
Except the market can stay irrational longer than you can stay solvent. The issue is that any open version of a product has to compete in such a way that matches the buy cycle of the product. I don't imagine farmers buy new combines every year! These things has to work for decades! Ditto with a lot of idustrial machinery.
- stagbeetle 10y ago
  > Except the market can stay irrational longer than you can stay solvent. This applies solely to stock market speculation, due to a perfect amalgamation of human psychological biases and fallacies. In consumer economics we use utility value (iirc, it's been far too long since I've opened a textbook). Consumers will definitely drop their JD's if a "no-bullshit," almost as good option comes along, because the utility value gained will be higher than the asset loss.
  - michaelmrose 10y ago
    This assumes consumers actually rationally assess the value and don't value emotional brand attachments.
    - MichaelBurge 10y ago
      We're talking about farmers, not porn viewers. We not only can assume they're rational, but have spreadsheets for financial modeling and a dedicated capital expenditures budget. And if they don't do any of these, it would be easier to buy them out and replace them with someone who does.

by cc439 10y ago

chii 10y ago

Except the market can stay irrational longer than you can stay solvent. The issue is that any open version of a product has to compete in such a way that matches the buy cycle of the product. I don't imagine farmers buy new combines every year! These things has to work for decades! Ditto with a lot of idustrial machinery.

stagbeetle 10y ago
> Except the market can stay irrational longer than you can stay solvent. This applies solely to stock market speculation, due to a perfect amalgamation of human psychological biases and fallacies. In consumer economics we use utility value (iirc, it's been far too long since I've opened a textbook). Consumers will definitely drop their JD's if a "no-bullshit," almost as good option comes along, because the utility value gained will be higher than the asset loss.
- michaelmrose 10y ago
  This assumes consumers actually rationally assess the value and don't value emotional brand attachments.
  - MichaelBurge 10y ago
    We're talking about farmers, not porn viewers. We not only can assume they're rational, but have spreadsheets for financial modeling and a dedicated capital expenditures budget. And if they don't do any of these, it would be easier to buy them out and replace them with someone who does.