Comment by throwaway1525
5 years ago
Can you give few examples "baker" products which have scaled to really large scale? I always see it as everybody starts as a baker but over time it becomes a sliding scale.
5 years ago
Can you give few examples "baker" products which have scaled to really large scale? I always see it as everybody starts as a baker but over time it becomes a sliding scale.
Apple hardware/software, Microsoft Windows, Intel hardware, Netflix (buffet TV shows), Amazon web store (logistics), Etsy store, Steam / GOG Games - all of these (except Netflix) are selling* either hardware or software, to you, once.
Netflix is a subscription to access and stream a lot of shows, but it is "fee for subscription service", not all that different from an alarm company subscription, OnStar, or a subscription lawn maintenance company.
* Ok, Steam / GOG Games or Microsoft Windows is a licensed use with limited conditions, it's not like you can use it on just any hardware
I would not put Netflix in this category as there has been extensive coverage on how they try to get as much time spent as possible. Autoplaying content at the end of one show is a prime example, and how that time was optimized down to be incredibly short.
Short version: Subscription retention and time spent correlate, so they still have the "crack dealer" model incentives.
Most large e-commerce sites including Etsy aren't bakers. They use recommendation engines, personalized site experiences, email marketing campaigns, discount coupons for repeat purchases, dark patterns, offsite re-targeting ads and so on to get you to buy and buy repeatedly.
edit: And the ever fun one of free shipping with a minimum order of X, great way to make you think you're getting a deal by giving them more money.
I'd consider the auto industry to be a "baker" industry (for the most part). Ikea's a "baker", GAP is a "baker". A lot of the pre-digital world made pure play baked goods.
>A lot of the pre-digital world made pure play baked goods.
Coupon codes on your receipt, planned obsolescence, strategic item placement in store to encourage buying additional or more expensive items, loyalty programs and points, physical marketing mailings, targeted pre-internet advertising, etc.
Careful with fashion. Fashion trends are manipulated to keep the dopamine flowing if and only if you update your wardrobe every season. All the magazines, shows, etc... it's not entirely innocent of the problems we're discussing.
To piggy back on this, is it possible to continue being a baker at scale without pricing most people out of your product?
i.e. is it possible to provide something like (internet search) or (social networking) that relies on a paid model? Not everyone who needs/uses google or facebook can afford an iPhone.