In my view, Claude's on the mark about this. If a group of investors puts up big-time capital for long haul promotion, esp. during a struggling "ramp up" that can last years, eBay "might" someday lose its monopoly. The business models of Amazon.com, Netflix and even bankrupt Delta Airlines come to mind. All three struggled mightily, esp. Amazon and Netflix, during their start-up years. Turned out offering free shipping and building the most navigable retail web site turned the corner for Amazon. But it took NINE years for Amazon to post a profit. Netflix, founded in 1998, is only JUST NOW about to pull out of red ink. Meanwhile, Delta Airlines is bankrupt, but has finally decided to play the Southwest & Jet Blue game, shaking up competitors United and American Airlines.
Remember when Blockbuster Video and Barnes and Noble were the only games in town? Netflix was a response to the "Blockbuster store in every neighborhood." Amazon was the response to Barnes and Noble devouring every competitor from Waldens to Doubleday to B. Dalton Books. Now Blockbuster is eliminating late fees and is trying to takeover Hollywood Video. All because of Netflix, which took the risk on the DVD format and looks solid over the long haul. And Netflix, determined to stay ahead of the moving train instead of being dragged behind it, has already dropped its monthly rates by about $6-7, anticipating challenges from Wal-Mart and Amazon. eBay will ONLY do the same WHEN and IF it sees legitimate competition.
A giant like eBay will NEVER be successfully challenged without a maniacal devotion to pour endless dollars into delivering consistent blue chip service and into innovative and incessant marketing. Over many years, not several fiscal quarters. Only entrepreneurs w/enormous resources can hope to accomplish what Bezos (Amazon) and Marc Randolph (Netflix) have. And even then, success isn't guaranteed.
I remember the hoopla over Homegrocer.com. Imagine! Fresh groceries delivered to your home! But shipping costs offset savings and the convenience of never leaving your home -- while the money to promote, innovate and improve ran out. After a 'novelty' wears off, you have to keep building and remain innovative and have enough money to last years before turning a profit. To earn money you have to have it. Fox News is plastering CNN and MSNBC in the ratings, and NOT just because it's perceived "conservative." The bigger truth is it had a bottomless pit of money from Murdoch that kept 'em in the game, enabling them to experiment, break rules and becoming the "anti-CNN." Yet its viewership, while bigger than MSNBC and CNN COMBINED, is still nothing compared to broadcast network news. It's making money hand over fist now. But only because it had a lot of "start up" money with which to begin. Its parent company also makes movies, remember? Without a money pile, competitors fail to bring down giants. And so too, will anyone with "only" a few million bucks to challenge eBay.
-d.
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From: [EMAIL PROTECTED] Reply-To: [EMAIL PROTECTED] To: [email protected] Subject: Re: MPB lowers auction fees !
I truly understand everyone's frustration with the giant Ebay but you must face reality. I will use Bruce Hershenson as an example. He is just shy of 15,000 positive feedbacks. Since ebay only allows 1 positive per buyer for a seller, that means he has sold to at least 15,000 different buyers. (Most likely more since not everyone leaves feedback.) His numbers grow weekly and before this year is out he will probably be over 16,000. This is because of the huge potential of new buyers on ebay on a daily basis.
MoPo has around 500 members and I have no clue how many have big dollars to spend on posters. Based on my observations I doubt more than a small number can consistently buy posters in the $1000 to $10,000 range. Unless you can get people to peruse the offerings and buy consistently, then JR cannot spend a lot of money promoting the site. You also will not get sellers to place expensive posters on the site unless the starting price is a high number. Even BH, when he placed items on the site did not start them at his usual low number.
Promotions cost a lot of money, maintaining an auction site costs a lot of money,etc., etc., etc. JR has spent a huge amount of his own money to start this site. Are the people who want this to become the major site for movie posters willing to send him a large amount of money to help promote the site? I am not tilting at windmills here, because I am very serious. JR cannot and will not spend the money unless people back him with more than words and wishful thinking.
You must face the reality that ebay is here to stay and unless you can get a huge dealer like BH to switch (and to bring his followers, all 15,000 of them) you don't have a chance. I just saw two Ocean's 11 one sheets go for $2025 and $1325 on ebay. Movieposterbid does not get that kind of action. At this very moment there are 22,234 original US posters listed on ebay. You have 281 listed on Movieposterbid. Movieposterbid needs much more than words. It needs financial backing, serious and constant promotion, etc.
The thoughts are wonderful, the ideas are great, the reality is wishful thinking and not plausible unless the influx of money begins. Are you ready to contribute more than words? Only you know the answer.
Claude Litton
Visit the MoPo Mailing List Web Site at www.filmfan.com
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