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Re: An Open Letter to the IAHC
- Date: Sun, 29 Dec 1996 17:57:22 -0500
- From: "Leo Smith" <barter@ntplx.net>
- Subject: Re: An Open Letter to the IAHC
Perry...think a little more about the operation of a supermarket. While it
is the case, in theory, that you could invest $10,000,000 to open a
supermarket, there are factors that go into your business equation prior to
deciding whether to invest:
1) what is the fixed radius from the supermarket location from which you
can expect to draw customers.
2) what is the population of the geographic area that falls within your
market radius.
3) what is the Buying Power index for that area
4) based on your investment, what part of the marketshare would you need to
take away from existing grocery store operators in order to meet the
minimum sales figures needed to justify your investment in opening a store.
5) Do current market conditions justify room in that geographic area for
another grocery store?
Perry wrote:
@With the ability for just anyone at all to
@ start a supermarket at any time selling identical products no one
@ could make money, so everyone worldwide stopped selling food.
The answer to your question is that everyone does not stop selling food.
However, many people that start a business fail in it. More business
failures occur by far than business successes. In the SHARED environment,
more registries will fail as businesses than would be the case in an
exclusive license environment. Ultimately, the question to IAHC is: "to
what degree does IAHC consider the importance of providing sound business
architecture for the framework under which registries will operate?".
What's your personal thoughts on that question?