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Being unique is important if you actually want to dominate the market. A product like his has captured a piece of the pie, but someone with equal distribution c

by asdev 2y ago

Being unique is important if you actually want to dominate the market. A product like his has captured a piece of the pie, but someone with equal distribution can easily eat into that since he has no moat.

twojobsoneboss 2y ago
His moat is his price. And it absolutely is a moat because most bigger competitors would not bother competing in the segment with even lower prices, as there’d be no upside
- xiaoape 2y ago
  > His moat is his price. His moat is a combination of pricing + cost structure + time spent to cumulate the customer base. If someone were to enter the market and try to take his business, they will have to consider if their conditions can result in the same offerings. I don't think it's easy to match the same offerings.
- make_it_sure 2y ago
  there's no moat. Indie hackers can build a tool like this in a month and i think there are already many copycats.
  - camdenreslink 2y ago
    Indie hackers frequently think they can build tools like this in a month (hence the "I could build that in a weekend" trope). But making something that actually works well takes time (that this founder has taken).
seanhunter 2y ago
What if he doesn't actually want to dominate the market? The idea of an "economic moat" comes from Warren Buffett[1] and it was/is part of his investing philosophy to look for companies with some sort of unique feature which allows them to dominate markets and create effective monopolies on their particular niche. It makes sense in that context but it doesn't necessarily apply everywhere. What if you're just trying to create a business that gives you a good lifestyle and you're not looking to dominate? Maybe the market is big enough that if you just take a piece of it that's plenty. There are plenty of businesses out there that are offering a product that is one of a range but the market is large enough to sustain multiple offerings. Not everyone needs a moat because not everyone is trying to build a castle. [1] I believe he first used it here in his shareholder letter where he describes GEICO's low costs as creating a moat that competitors couldn't cross. May have been earlier but most people credit the invention of the term to him anyway https://www.berkshirehathaway.com/letters/2016ltr.pdf https://www.berkshirehathaway.com/letters/2016ltr.pdf
- fuzztester 2y ago
  >What if he doesn't actually want to dominate the market? Agreed. >What if you're just trying to create a business that gives you a good lifestyle and you're not looking to dominate? Maybe the market is big enough that if you just take a piece of it that's plenty. There are plenty of businesses out there that are offering a product that is one of a range but the market is large enough to sustain multiple offerings. Yes. In fact, the majority of businesses in the world are probably this way. >Not everyone needs a moat because not everyone is trying to build a castle. That's a brilliant line and metaphor. Gonna steal and share it whenever and wherever I can. Thanks.
- WJW 2y ago
  It depends a lot on if you have any competitors that do want to dominate the market and could undercut you on price or overclass you with features. It's fine not to want a castle but you should have a plan for when the enemy army comes by.
- FartinMowler 2y ago
  I thought it was Benjamin Graham, who's most famous pupil was Warren Buffet. I'll have to look it up when I get back. Right now I'm in the woods, drunk, in a tent in a rainstorm with nothing to do but HN and without a care if my SaaS is up or not (change freeze since 2 weeks ago).

by asdev 2y ago

twojobsoneboss 2y ago

His moat is his price. And it absolutely is a moat because most bigger competitors would not bother competing in the segment with even lower prices, as there’d be no upside

xiaoape 2y ago
> His moat is his price. His moat is a combination of pricing + cost structure + time spent to cumulate the customer base. If someone were to enter the market and try to take his business, they will have to consider if their conditions can result in the same offerings. I don't think it's easy to match the same offerings.
make_it_sure 2y ago
there's no moat. Indie hackers can build a tool like this in a month and i think there are already many copycats.
- camdenreslink 2y ago
  Indie hackers frequently think they can build tools like this in a month (hence the "I could build that in a weekend" trope). But making something that actually works well takes time (that this founder has taken).

seanhunter 2y ago

What if he doesn't actually want to dominate the market? The idea of an "economic moat" comes from Warren Buffett[1] and it was/is part of his investing philosophy to look for companies with some sort of unique feature which allows them to dominate markets and create effective monopolies on their particular niche. It makes sense in that context but it doesn't necessarily apply everywhere. What if you're just trying to create a business that gives you a good lifestyle and you're not looking to dominate? Maybe the market is big enough that if you just take a piece of it that's plenty. There are plenty of businesses out there that are offering a product that is one of a range but the market is large enough to sustain multiple offerings. Not everyone needs a moat because not everyone is trying to build a castle. [1] I believe he first used it here in his shareholder letter where he describes GEICO's low costs as creating a moat that competitors couldn't cross. May have been earlier but most people credit the invention of the term to him anyway https://www.berkshirehathaway.com/letters/2016ltr.pdf https://www.berkshirehathaway.com/letters/2016ltr.pdf

fuzztester 2y ago
>What if he doesn't actually want to dominate the market? Agreed. >What if you're just trying to create a business that gives you a good lifestyle and you're not looking to dominate? Maybe the market is big enough that if you just take a piece of it that's plenty. There are plenty of businesses out there that are offering a product that is one of a range but the market is large enough to sustain multiple offerings. Yes. In fact, the majority of businesses in the world are probably this way. >Not everyone needs a moat because not everyone is trying to build a castle. That's a brilliant line and metaphor. Gonna steal and share it whenever and wherever I can. Thanks.
WJW 2y ago
It depends a lot on if you have any competitors that do want to dominate the market and could undercut you on price or overclass you with features. It's fine not to want a castle but you should have a plan for when the enemy army comes by.
FartinMowler 2y ago
I thought it was Benjamin Graham, who's most famous pupil was Warren Buffet. I'll have to look it up when I get back. Right now I'm in the woods, drunk, in a tent in a rainstorm with nothing to do but HN and without a care if my SaaS is up or not (change freeze since 2 weeks ago).