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View Full Version : "Commoditize the Compliment"



earthpigg
December 15th, 2010, 09:46 PM
This concept recently became familiar to me because of a link someone posted here on ubuntuforums.org (http://www.joelonsoftware.com/articles/StrategyLetterV.html) about how software is priced.

That link shows the example of how both IBM and Microsoft attempted to commoditize certain aspects of the computer market.

Here's the gist of it, and one other example I came up with:

Once upon a time, music was expensive and music players where a dime-a-dozen commodity. Many people had massive cassette or CD collections, and paired them with $30 cassette or cd players and a pair of headphones. Music itself was expensive, so people tended to spend less on portable methods to play that music.

Now, in the post-Napster world where music prices range from $0.99 for that one track you want to $0 for all the music as you could possibly want, music has become dime-a-dozen. One of the results of that is that people are willing to spend hundreds of dollars on portable music players of various types.



What other examples exist of the "Commoditize the Compliment" phenomenon?

JDShu
December 15th, 2010, 11:44 PM
I think Printers are the famous example. Ink costs as much as half the cost of the machine itself.

earthpigg
December 16th, 2010, 12:08 AM
I think Printers are the famous example. Ink costs as much as half the cost of the machine itself.

which is interesting, being that one can purchase ink not made by the printer's manufacturer.