
Re: Where are we all going.
In this article we describe how, in a haze wanders Russia, and ask questions about why we have bad and others good.
I wanted to write a comment, but it eventually grew to a full post, which is quite suitable for my personal blog.
So:
In the article, not everything is true. Rather, too much is untrue to be perceived differently than the cry of the soul. For prices, for example, rubbish is written ... Here is an online store in the UK www.sainsburystoyou.com . Prices are comparable to Moscow, sometimes higher, sometimes lower (I won’t even compare with Kopek and market prices). Where does this categorical assessment come from?
Our agricultural products cannot be cheaper. Just because our super-cheap labor has scanty productivity, its efficiency tends to zero. At the same time, our men are in the ranks with enviable inconstancy. What kind of planning and adjustment of business processes can there be? If you add to this not the best conditions for growing anything, the lack of money for fertilizers and agricultural machinery, as well as the huge distances with poor roads, then everything becomes clear.
Western “food producers” can provide cheaper products due to the fact that they receive subsidies from the state, have developed sales channels, “long” loans for equipment, favorable conditions for leasing equipment and a highly competitive market, forcing to develop and improve the entire production process.
Our market is only in its infancy. During this period, high prices are natural. I will give an example from life. In the early nineties, a friend in the Far East did this: he went from his small town to Khabarovsk, bought a TV. Brought, sold 2 times more expensive. With this money I bought two TVs. Brought, sold. I bought four. A month later, he had already brought a truck of any equipment and opened a store. Try it now! What is the current trade markup for a budget TV in Eldorado? The market has reached a certain development and the margin has begun to decline, while the quality of goods and services has grown.
The same thing will happen and is already happening in other industries.
Another example.
When I ended up in the hosting business N years ago, Highway had a very popular Pyaterochka tariff. For 5 ye per month, it offered 5 MB for the site and 5 MB for mail (then expanded to 50 MB). No databases, PHP, Perl, CGI. html, SSI, basic scripts - and be healthy. But they grabbed Pyaterochka like hot cakes, because there weren’t any offers on the market for less than 10 ye.
Compare with what is happening now.
Has iron become cheaper? So after all, the limits have grown for everything - a lot of space, bases. And sites now eat more than 3-5 years ago.
Is traffic cheaper? So, even at that time, serious players did not consider the traffic for shared hosting.
Increased staff costs? But the automation of processes has increased.
Office rents up? Krupnyaki geographically divided the reception and the back office, someone brought the call center outside the metropolis.
Has the margin gone down? But the volumes increased.
Increased market entry price? Increased investment in infrastructure.
But this is not the limit of price reductions and TTX growth ... and changes will occur further.
I’m all about panic. Apocalyptic moods can be crammed away. In our country, everything is not so bad. You need quite a bit: work on yourself and develop the areas in which you revolve. Do Your Best, and the market will put everything in its place and we will be happy.
:)
I wanted to write a comment, but it eventually grew to a full post, which is quite suitable for my personal blog.
So:
In the article, not everything is true. Rather, too much is untrue to be perceived differently than the cry of the soul. For prices, for example, rubbish is written ... Here is an online store in the UK www.sainsburystoyou.com . Prices are comparable to Moscow, sometimes higher, sometimes lower (I won’t even compare with Kopek and market prices). Where does this categorical assessment come from?
Our agricultural products cannot be cheaper. Just because our super-cheap labor has scanty productivity, its efficiency tends to zero. At the same time, our men are in the ranks with enviable inconstancy. What kind of planning and adjustment of business processes can there be? If you add to this not the best conditions for growing anything, the lack of money for fertilizers and agricultural machinery, as well as the huge distances with poor roads, then everything becomes clear.
Western “food producers” can provide cheaper products due to the fact that they receive subsidies from the state, have developed sales channels, “long” loans for equipment, favorable conditions for leasing equipment and a highly competitive market, forcing to develop and improve the entire production process.
Our market is only in its infancy. During this period, high prices are natural. I will give an example from life. In the early nineties, a friend in the Far East did this: he went from his small town to Khabarovsk, bought a TV. Brought, sold 2 times more expensive. With this money I bought two TVs. Brought, sold. I bought four. A month later, he had already brought a truck of any equipment and opened a store. Try it now! What is the current trade markup for a budget TV in Eldorado? The market has reached a certain development and the margin has begun to decline, while the quality of goods and services has grown.
The same thing will happen and is already happening in other industries.
Another example.
When I ended up in the hosting business N years ago, Highway had a very popular Pyaterochka tariff. For 5 ye per month, it offered 5 MB for the site and 5 MB for mail (then expanded to 50 MB). No databases, PHP, Perl, CGI. html, SSI, basic scripts - and be healthy. But they grabbed Pyaterochka like hot cakes, because there weren’t any offers on the market for less than 10 ye.
Compare with what is happening now.
Has iron become cheaper? So after all, the limits have grown for everything - a lot of space, bases. And sites now eat more than 3-5 years ago.
Is traffic cheaper? So, even at that time, serious players did not consider the traffic for shared hosting.
Increased staff costs? But the automation of processes has increased.
Office rents up? Krupnyaki geographically divided the reception and the back office, someone brought the call center outside the metropolis.
Has the margin gone down? But the volumes increased.
Increased market entry price? Increased investment in infrastructure.
But this is not the limit of price reductions and TTX growth ... and changes will occur further.
I’m all about panic. Apocalyptic moods can be crammed away. In our country, everything is not so bad. You need quite a bit: work on yourself and develop the areas in which you revolve. Do Your Best, and the market will put everything in its place and we will be happy.
:)