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Pastimes : The Death of Silicon Investor
INSP 100.23+3.9%10:49 AM EST
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To: greg s who wrote (355)12/30/2001 1:50:23 PM
From: WTMHouston  Read Replies (2) of 1003
 
<<If you have a product or service that is in demand, you can make a profit in providing same. The difference between profit and loss lies in the business plan and management.>>

This is only partially true, IMO. There are many products and services that have great raw demand but could never profit because of the price attached to them. Demand can and does evaporate in the face of a price above the threshold supporting the demand.

The best example of the last quarter-century is the electric car. There has been and is a great deal of pure demand for a cleaner automobile. But, at the price attached to it, demand declines to a point where profitability is questionable, at best.

Of course, the price vs. demand equation is what the debate about message board profitability is all about. There is and will always be a lot more demand at $00.00 than at, say, $10.00 a month, or at any price above $0.00.

By way of comparison, tens of millions of people in this country will gladly plunk down $15-$20 a month for a daily newspaper. Very few of the same folks (comparably speaking) will pay the same amount (or anything close to it) for a purely electronic version of the paper. When it comes to getting it electronically, many (if not most) folks think it ought to be either free or close to it. Thus, SI's dilemma.

Not every better mouse trap can be profitable no matter how many people like and want the product.

Troy
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