- Great free services: Gmail (and others), Google Maps, freemium models for everything from dropbox to tripit.
- Open source: lots of commercial products are facing real competition from open source projects focused on the same space.
That wouldn’t fly. Selling TouchPads at a steep loss wouldn’t just burn a ton of cash “at first”. It would burn a ton of cash continuously, every time one was sold. […] Sustainable businesses are built on profit.Amen. And John’s point is right, in my view – without a way to make money post-sale on each of these tablets, the prospects for a loss-leader strategy are not good. Making money is a habit, and a discipline. In this case, HP tried to do the right thing at first – price them an aggressive, but profitable , price. That wasn’t working. The value proposition wasn’t good enough vis-a-vis the iPad. But a lower priced device isn’t viable for HP’s business. When I work with vendors, I want to know they’re making money. Otherwise their business isn’t sustainable – and how do I know I won’t be holding the bag when I needed them most? And as our business and our needs grow, how will they continue to support our business? They have to have profits to reinvest! If a company isn’t making money, it should still be in search of its scalable business model – it isn’t a real business yet. If the model is set, and the company is losing money, it isn’t a business anymore, and the company should be in search of a recovery path.