Supply, demand and ideas for startups
Another classic way to make something people want is to take a luxury and make it into a commodity. People must want something if they pay a lot for it. And it is a very rare product that can't be made dramatically cheaper if you try.
-- Paul Graham
Can't say I agree. Quite often, the reason that people choose to pay a lot for a luxury item is simply conspicuous consumption. When everyone can afford ice-cream, it ceases to be a sop to vanity. Instead it becomes tooth-rotting mush, and the erstwhile patrons of expensive ice-cream parlours abandon them in favour of personal trainers.
This happens to an extent in software selection process used by large corporations. Why would you pay $50K+ for BEA WebLogic when you can get similar performance and features from JBoss for free? It works like this:
- Dev team says: Get JBoss. It's just as good and they'll give us the source so we don't have to sit around praying every time it flakes. If you desperately need to unload $50K you could always give it to us.
- Manager thinks: Large corporations will cough up $50K for it. Large corporations are famously lousy, so if they're prepared to part with big moolah they must know there's something significantly better about it. Although I can't see anything better about it, there is no way in hell I am going to admit that I can't see the Emperor's new clothes. So therefore the desirability is ineffable and not to be questioned.
- Manager says to rich clients: You can have instant competitive advantage, just like [insert megacorp here]. You need only Have Faith in the F500 and Believe. We'll be passing around the collections plate shortly. The best part is your neighbours can't afford to buy it, which means you get to keep your advantage.
So they buy it. Of course, it doesn't stop there.
- Manager says to other clients: Behold, they have competitive advantage! If you do not repent, and I do mean toute suite, then surely will you be consigned to the flames of receivership. We'll be passing around the collections plate in a few minutes. FUD FUD FUD.
Followed by the inevitable...
- Manager says to dev team: We have to use WebLogic, our clients expect it.
...and the usual fantasy.
- Dev team brutally slays manager.