The oftentimes prohibitive cost of data

When costs for a particular product or server get prohibitively high, typically in a monopoly situation, it’s a great time for a startup to come in and level the playing field. Competition is the golden key to creating a price point that matches supply and demand.

Yesterday i reached out to a company i found online that offered movie time data and a cool affiliate program that could let my site visitors buy tickets, creating a nice affiliate revenue stream. In the ideal world, the data stream would be free, which would then increase the amount of tickets sold through a now increasing amount of affiliates. In this theoretical world, the movie producers would think logically and offer this data to anyone, knowing that more access to tickets = more sales = greater profit.

The pricing i received back from the company was somewhere between mind-blowing and ludicrous. $3,500 PER MONTH to access the data. That’s $42,000 a year. Absolutely ridiculous. Of course they also have a similarly crazy pricing plan where you pay $0.25 per screen per week. So for a typical 12 screen theatre, you pay $12/month just to see what times movies are playing. Now of course if you try to build any sort of national app that integrates a users geo-location, you’re looking at much more than $3,500 a month if paying on a per screen basement.

I’m sure somewhere in this company a sales guy is doing the math for us entrepreneurs – Why spend $15,000 a month by paying per screen when I can get you EVERY screen for just 12 easy payments per year of $3,500.

If anyone hears of a better alternative, somewhere in between scraping the data and paying through the roof for it, i’d love to hear from you.

Mass Mailing and the need to reduce waste

Today my mailbox was full of mass mailings, all from Dell, all the same offer. Each envelope had the same address, business name and suite. The only difference: The person it was addressed to. If Dell could simply find a way for their database to know we are all from the same company, they could save 75% on their costs to market to me. Multiply that by the millions they send to and you begin to see the savings that are possible. There must be a smart young company out there ready to pitch Dell on their magical savings solution.

For now,  I’ll just keep on shredding.