locked Re: Pricing Changes #update
Hi Bruce,toggle quoted messageShow quoted text
Mark had asked us to keep sharing our opinions, because he understands that no one is intelligent enough to see all aspects of a “problem” from a single perspective. That’s why most intelligent life has more than one eye. I’m contribute to his decision making process so long as I think he is listening.
Sometimes we have to step back and look at a logical thought process. While most of us, like you, lack Mark’s “... information on what it costs groups.io to send 100,000 emails (or whatever)…”, I was fascinated by your statement "I do know that whatever the cost may be, it's coming directly out of Mark's pocket.” Really?
I respectfully disagree. “Cost” is merely one part of business CASH FLOW, a resource it is incumbent upon each and every owner to establish and manage well. Someone once opined that, from the perspective of the IRS, the “problem” is that people think of what they “earn" as “their money”.
Businesses don’t last long if financial management starts with the opinion they are somehow “entitled” to a certain “standard of living”. That’s because unless the business CASH FLOW is sufficient to timely pay the bills its activity generates, creditors at some point step in and seize assets for a court to dispense appropriately. It is ONLY at THAT point the issues of just WHO rightfully has claim to how much of BUSINESS assets is resolved, and how much of TOTAL ASSETS are BUSINESS ASSETS are ascertained by one more presumably impartial third parties.
The “bottom line” for the average “business” is that the owner or stockholder “earnings" are whatever is left AFTER the bills are paid. That simplifies one’s choices to (1) increase cash flow, or (2) reduce associated expenses to increase "whatever is left”. That’s what Mark is trying to do.
In the beginning, he allowed and encouraged “free groups” on Groups.io. Learning as time passed, as a responsible manager, he notes what contributes to "whatever is left” and what reduces that amount. I think he realized at some point that time was not on his side with what he was doing, so he is trying to change the “management model” to one consistent with his personal financial goal(s) AND.
He is in the process of trying to assure long term financial viability for Groups.io. He has two primary resources, his personal time and talent and CASH FLOW. He must constantly evaluate and adjust how much of each he allocates to (1) servicing/maintaining the existing business, (2) achieving his financial goals for (1) the present and future business and (2) his own personal life style.
As businesses age, many reach a point where management decides they will be content to just “milk” the business as a “cash cow” and devote no more time to it than suits them. This is the phase where the “new broom sweeps clean” factor asserts itself, when competitors who are still motivated to compete in a given “business” may find a way to siphon away the “customer base” that is essential to every ongoing commercial enterprise.
Mark’s choices as to how much he can “give” to his “customers” and how much he can extract for himself are neither infinite nor insulated from “real world considerations”. In short, he must “choose wisely” :<)
Been there, done that, retired.