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Marketing the Database - Ideas

 
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john877
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PostPosted: Thu Nov 19, 2009 9:09 pm    Post subject: Marketing the Database - Ideas Reply with quote

ADMIN Edit: Topic split from Inforad post here as it was OT

Just out of interest why have the PGPS team not considered producing or selling under license a device such as the inforad as part of there business strategy.
With a loyal customer base and the excellent camera data base and the very good customer support they give they are half way there !!
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Darren
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PostPosted: Thu Nov 19, 2009 9:41 pm    Post subject: Reply with quote

john877 wrote:
Just out of interest why have the PGPS team not considered producing or selling under license a device such as the inforad as part of there business strategy.
With a loyal customer base and the excellent camera data base and the very good customer support they give they are half way there !!

We have and were in the process of investigating potential hardware designs when the economy nose dived.

We wouldn't want to offer any old rubbish hardware. When you consider that even a relatively small initial order would require an investment of 100k+ and we would have to sell at 60+ if we were to see any return on that cost plus storage, admin, sales etc then you can see the huge risk.

We don't have that kind of money to gamble on such a project.
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Seamaster
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PostPosted: Thu Nov 19, 2009 10:00 pm    Post subject: Reply with quote

Perhaps a shared risk/shared reward model with Inforad is a possibility worth exploring? You're half way there already.
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Darren
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PostPosted: Thu Nov 19, 2009 10:13 pm    Post subject: Reply with quote

Do the maths. Inforad sell a device for 30. Even if they make 50% profit that is a one time profit of 15.

They then have to sell another device in an ever decreasing market of potential new customers to generate more income. That customer is essentially done and dusted. The only additional income thy will get from him/her is if they sell them a new device later on.

That is a tough sales model to sustain with low profiyt, no ongoing revenue stream and a commitment to provide a service. That 15 has to fund all the development, investment updates, data collection and all licensing costs for that data etc etc ad infinitum.

We have an on-going business model with low overheads and an on-going revenue stream that allows us to continue development and focusses us on the data without which we would have no customers.

As I said, Lifetime Updates are a poor model and unsustainable in the long term with prices falling and profit being squeezed. I can't think of many other business models like that that have ever succeeded?
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john877
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PostPosted: Thu Nov 19, 2009 10:14 pm    Post subject: Reply with quote

Darren wrote:
john877 wrote:
Just out of interest why have the PGPS team not considered producing or selling under license a device such as the inforad as part of there business strategy.
With a loyal customer base and the excellent camera data base and the very good customer support they give they are half way there !!

We have and were in the process of investigating potential hardware designs when the economy nose dived.

We wouldn't want to offer any old rubbish hardware. When you consider that even a relatively small initial order would require an investment of 100k+ and we would have to sell at 60+ if we were to see any return on that cost plus storage, admin, sales etc then you can see the huge risk.

We don't have that kind of money to gamble on such a project.



I think you need a dragon Laughing
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Seamaster
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PostPosted: Thu Nov 19, 2009 10:50 pm    Post subject: Reply with quote

Darren wrote:
That is a tough sales model to sustain with low profiyt, no ongoing revenue stream and a commitment to provide a service. That 15 has to fund all the development, investment updates, data collection and all licensing costs for that data etc etc ad infinitum [...] Lifetime Updates are a poor model and unsustainable in the long term with prices falling and profit being squeezed. I can't think of many other business models like that that have ever succeeded?


Low margin businesses exist and thrive. They simply require high volumes. A cursory Googling suggests Inforad products are big sellers on the continent, which may sustain their business model? It would be interesting to know their unit sales...
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Darren
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PostPosted: Thu Nov 19, 2009 10:55 pm    Post subject: Reply with quote

Seamaster wrote:
Low margin businesses exist and thrive. They simply require high volumes

Low margin businesses exist yes, of course. But can you suggest any similar low margin equivalents where they have a commitment to provide a continuous ongoing service for no additional fee as well?
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Seamaster
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PostPosted: Thu Nov 19, 2009 10:58 pm    Post subject: Reply with quote

Darren wrote:
Seamaster wrote:
Low margin businesses exist and thrive. They simply require high volumes

Low margin businesses exist yes, of course. But can you suggest any similar low margin equivalents where they have a commitment to provide a continuous ongoing service for no additional fee as well?


Prepay mobile.
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Darren
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PostPosted: Thu Nov 19, 2009 11:02 pm    Post subject: Reply with quote

Nope. There are ongoing call charges Prepay users pay in advance for a known amount of access. They don't buy a phone with free unlimited ongoing access to service for life.
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john877
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PostPosted: Fri Nov 20, 2009 10:17 am    Post subject: Reply with quote

I think the problem is technology products have a short shelf life ( what was yesterdays must have gadget is now in the drawer) development is continuous and this costs money so eats into profits !! so I can understand your caution
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Kritou
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PostPosted: Fri Nov 20, 2009 3:53 pm    Post subject: Reply with quote

PGPS own the best database and Inforad argueably the best bit of standalone hardware. If it were suggested to Inforad that they produce a version of the K1 that that could directly download and utilise PGPS data, everyone would surely win? No development costs etc for you and for them no need to maintain a DB - just keep churning out hardware that sells

Or am I being naive and missing something?
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john877
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PostPosted: Fri Nov 20, 2009 5:59 pm    Post subject: Reply with quote

I am sure this is something the PGPS team have looked into but I noticed while shopping today the array of gift cards available for different products on the high street !!would the costs be to high to produce a gift card and sell directly from this website to the customer for a years activation of the database or provide an activation code by email !!

Also it would give an opportunity to sell through motor accessory stores

I am not sure if this had been discussed before !!! I guess it probably has as this would a natural point of sale
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Darren
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PostPosted: Fri Nov 20, 2009 6:31 pm    Post subject: Reply with quote

Gift subscriptions have been discussed in the past but it's not a simple process to provide through the checkout system we have.

Were it something that had been asked for a lot then it would be given a high priority but I can recall only two or perhaps three requests for this in the years we've been running.

Similarly POS gift cards. They're a great idea but the costs of production and the difficulty in getting them into stores (plus the margin the stores want) makes it less than inviting!

Don;t get me wrong, we're always on the lookout for new avenues and ways to drive more business to our doors, we're still very much a niche outfit, almost all our business is word of mouth and so we are currently concentrating on marketing with a view to getting our name and service more widely known.

Once we have succeeded there then these ideas will have much more potential.
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Pocketgps
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PostPosted: Fri Nov 20, 2009 7:04 pm    Post subject: Reply with quote

I would be willing to pay 9.99 a year for the K1 updates.

Paying PGPSW 19.99 a year is very good value as you can use upto 3 different makes of gps.

The best thing about the K1 is it's size and ease of use.

If PGPSW did do a deal for the K1, Inforad would then need to charge a fee for the update to stay in-line with PGPSW so it's a very difficult one to resolve, as I am sure they trade on the LifeTime updates included.

Perhaps a new case for PGPSW, so that the device looks slightly different to the K1, and also to make sure that the data is directional. I know it is supose to be directional, but I find it's only the mobiles that are on mine.

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john877
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PostPosted: Fri Nov 20, 2009 8:41 pm    Post subject: Reply with quote

Could you not promote your business through car owners forums( such as the one you post on occasionally) with permission from there management ( there may be a small sponsorship charge ) members of these car owners forums are probably not aware of the excellent product you have .

I am sure members of pgps who post on these forums promote this site as I do but it would give it higher profile.

Just an idea
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