Tag Archives: marketplace

Why Bowman sold out to Topps, or how Topps bought Bowman

Virtually every schoolboy who is interested in baseball cards knows the story of how Topps bought Bowman. After World War II, Bowman was the leading brand of baseball card, or, at least from 1948 until 1951. Then, in 1952, Topps released its landmark 1952 set. Bowman and Topps battled for baseball fans’ nickels and pennies until 1955. Then, in early 1956, Topps bought Bowman, and that was the end of Bowman until the late 1980s, when Topps dusted off the brand name and started issuing Bowman cards again. And Topps faced precious little competition in the baseball card field until 1981, when Fleer and Donruss won the right to produce cards.

That’s the story as I knew it. But there’s a lot more to the story, starting with the details of the purchase. In January 1956, Topps bought its once mighty rival for a mere $200,000. Normally a company sells for 10 times its annual revenue, and Bowman had sold $600,000 worth of baseball cards alone just two years before. The purchase price makes no sense, until you dig a bit deeper.

Continue reading Why Bowman sold out to Topps, or how Topps bought Bowman

Identify bad guys through writing style

This month’s Social Engineer podcast discussed a tactic to identify bad guys through writing style, something the hosts expressed surprise was possible.

This won’t be news to anyone who minored in English or Communications or Journalism. A lot of factors go into style—where we grew up, where our parents are from, what we read growing up, our life experience, and it really is like a fingerprint. Fitzgerald’s Gatsby called everyone “Old Sport,” and we all have something like that, it’s just usually more subtle. I’ll say, “taste this,” when my wife or mother in law will say “taste of this.” That’s a regional thing. I pick up on that because I’m interested in language. A really good linguist can pick up on a lot more than that, and machine learning can potentially pick up on still more.

If you recall, it was the Unabomber’s long manifesto that brought down Ted Kaczynski.  Other forensics proved it, but the investigation began with his brother’s observation that the manifesto “sounded like Ted.”

Continue reading Identify bad guys through writing style

How Ives-branded track clips ended up in Lionel sets

Ives-branded track clips for Lionel O27 track are relatively common, and although they are often mistaken for pre-1933 items, they were actually manufactured for several decades after the Ives brand name disappeared from the marketplace, and by Lionel, not its erstwhile rival Ives.

The reason was for trademark protection.

Continue reading How Ives-branded track clips ended up in Lionel sets

A penny-book author’s take on secondhand sales, physical and digital

There was talk on Slashdot on Friday about reselling digital media, and typical sky-is-falling predictions saying that secondhand sales will drive down prices and drive artists out of business. “Look!” some say. “There are used books on Amazon that sell for a penny!”

Yes there are. My book was one of those, until Windows 95 became old enough that retro computing enthusiasts became interested in it. Now when I want to buy a copy, I have to compete with those hipsters. But you know what? Copies of my book selling for a penny never bothered me. I’ll tell you why.

Continue reading A penny-book author’s take on secondhand sales, physical and digital

The trouble with Dell

Note: I wrote this in mid-2010 and, for whatever reason, never posted it. I found it this week. Although the information in it is no longer fresh and new, it’s still useful, so for that reason, I’m posting it now.

Dell is standing on some shaky ground right now. Bill Snyder has a good summary of the problem.

In recent years, Dell computers have, shall I say, made me nervous. Some of it’s been concrete. Some of it’s just been touchy-feely. Now one of those touchy-feely problems is more concrete. Continue reading The trouble with Dell

Lessons of the HP Touchpad

At full price ($499 for the 16 GB model and $599 for the 32 GB model) the HP Touchpad was a colossal flop. Like AT&T’s first PC clones of the mid 1980s, it was a me-too product at a me-too price that wasn’t quite as good as the product it was imitating. So, basically, there was no reason to buy it.

At closeout prices, it became an Internet sensation. The few web sites that have it in stock can’t handle the traffic they’re getting. At $99 and $149, it’s selling like the Nintendo Wii in its glory days.

And I think there’s a significant parallel there that highlights the missed opportunity.
Continue reading Lessons of the HP Touchpad

Lenovo and IBM look back at IBM’s PC exit

The Register reports that Lenovo is gloating over its purchase of IBM’s PC division and its turnaround efforts, while IBM doesn’t regret pulling out, at all, even going so far as to call the PC dead. Who’s right?

Lenovo. Though IBM was right to get out–but the PC is only as dead as the television. Old media doesn’t go away quickly. Radio was supposed to make newspapers go away, and it’s only now, 90 years later, that newsprint is hurting. The old stuff adapts and evolves and finds new uses. Some people argue that if newspapers were managed better, they wouldn’t be hurting, but that’s a different issue. Let’s talk IBM PCs.
Continue reading Lenovo and IBM look back at IBM’s PC exit

Milestone! I’ve been pirated!

In searching for the abstract of my book, I found more than I expected: What appeared to be a pirated PDF copy of the book in its entirety. What’s worse is that it appeared #1 in Google’s search. Numbers 2 and 3 were various pages on my site, #4 was my Wikipedia profile page, #5 was O’Reilly’s page, and #6 was Amazon’s page. So it’s easier to download a pirated copy of my book than it is to buy it. (It’s $2.03 at Amazon right now. Maybe I should buy some copies.)

I’m having trouble deciding whether that bothers me. The likelihood of me ever making another 25 cents off that book is slim. There was some talk at one time of releasing the book under some kind of Creative Commons license, but I never received the paperwork so I guess they changed their mind. As far as I know, it’s still under copyright.

And the copyright doesn’t belong to me, so ultimately it’s not up to me. I wrote it, but O’Reilly owns the copyright. So I e-mailed O’Reilly to ask them if they care.
Continue reading Milestone! I’ve been pirated!

A snapshot in history of Gates and Microsoft, 1992

Hard Drive: Bill Gates and the Making of the Microsoft Empire is a 1992 autobiography of Microsoft co-founder Bill Gates. It’s old. But it’s a compelling snapshot of what the industry thought of Gates and Microsoft before Windows 95, before Microsoft Office, and before Internet Explorer. Indeed, it gives an early glimpse into the struggle to bring Windows to market, some of the bad bets Microsoft cast on its early productivity software, and just how close Microsoft came to betting the company on the success of the Apple Macintosh.

If Microsoft’s history were written today, many of these stories would probably be forgotten.

Continue reading A snapshot in history of Gates and Microsoft, 1992

The rise and fall of Shack, and how to fix it

Wired has a nostalgic piece on the not-quite-late, not-quite-great Radio Shack. I think it’s a good article, but it glosses over part of the reason for the store’s decline.

It blames computers.But blaming computers ignores Tandy’s long and successful run in that industry. Most Apple fanatics and other revisionist historians conveniently overlook this, but when Apple launched the Apple II in 1977, Tandy and Commodore were right there with competing offerings. I don’t know about Apple, but Tandy and Commodore were selling their machines faster than they could make them.

As demand for home computers with color and sound grew, Tandy released its successful Color Computer line. And after IBM got into the PC market, Tandy became one of the early PC clone makers. They made businesslike PC/XT and PC/AT knockoffs, but their most successful machine, from a sales perspective, was the Tandy 1000. The Tandy 1000 started off as a clone of the IBM PCjr, but whereas the PCjr lasted about two years in the marketplace, the Tandy 1000 became a lasting standard for home PCs that could run IBM business software as well as entertainment titles with color and sound. It was everything the PCjr should have been, and it resulted in IBM software often being relabeled “IBM/Tandy” in stores.

In the 1980s, Tandy was definitely one of the big five companies. The first computer I ever used was a Tandy, in 1982. But the next year, I changed schools, and that school had Commodore 64s, so my allegiance changed. But I really think it was Tandy, more than any other company, that was the undoing of my favorite company, Commodore. Tandy’s computers weren’t any better than what Commodore had. And Commodore computers were sold at Kmart, but Tandy computers were sold at Radio Shack, and the prices were comparable. You had to go to St. Louis to buy a Commodore 64 or Amiga, or order it through the mail. But even in tiny Farmington, Missouri, which was a town of about 8,000 in the middle of nowhere, there was a Radio Shack on the edge of downtown where you could walk in and buy a computer.

Admittedly, the computer industry did change, and eventually it outgrew Radio Shack. By the early 1990s, when I did my stint selling computers at retail, the computer section of the store where I worked was larger than the typical Radio Shack store. Just the computer section. We sold four or five brands of computers and generally had at least four models of each brand, with an entry-level machine, something near top-of-the-line, and a couple of mid-range models in between.

If you wanted cheap, we had Packard Bell and Acer. Tandy couldn’t compete with them on price, though its machines were generally of better quality. But if you wanted quality, we had Compaq and IBM, which generally were better quality than Tandy, and by the mid 1990s, they’d gotten religion on price too.

And on the odd day that we couldn’t beat Radio Shack on price and or selection with the computers themselves, we had a much larger selection of monitors and printers, not to mention the aisles and aisles of books and software.

And if you didn’t live in the big city, another alternative sprung up in the early 1990s. You could pick up the phone, dial an 800 number, and order a computer from Dell or Gateway 2000. Just like ordering pizza, they’d build a computer to your specifications and deliver it to your door. You wouldn’t have it the same day like you would by going to Radio Shack, but you’d pay less, and you could get exactly the processor speed, hard disk capacity, and memory that you wanted.

There just wasn’t any way for the Tandy/Radio Shack model that had worked so brilliantly for about 15 years to compete with those two new models.

Eventually Tandy sold its factory to AST, a mid-range brand that fell by the wayside late in the decade but for a while was a retail juggernaut. Initially Radio Shack switched over to selling AST PCs, and later replaced them with Compaq and IBM, but there was never enough room in the store for more than one or two models.

In retrospect, I think the best thing Radio Shack could have done in the late 1990s would have been to go back to its DIY roots, selling computer components like cases and motherboards to people who wanted to build their own PCs rather than settle for what larger retailers offered off the shelf. It’s not a large segment, but it’s a niche that the large retailers have never had much success catering to. (The exception being regional chains like Fry’s and Micro Center.) And while the independent clone shops almost without exception can offer better advice, better selection, and, probably, better prices, Radio Shack is almost always closer, and the clone shops can’t compete with Radio Shack’s hours. Radio Shack is open on Sunday, and it’s open until 9 PM on other days.

I’ve lost count of the number of times I was tinkering with a PC in the evening or on a Sunday, needed something, and Radio Shack was the only place open. So I went, whether I thought they’d have what I needed or not. Sometimes they actually had what I needed.

If Radio Shack wants to reverse its sagging fortunes, I’m not sure that it’s too late to take that DIY road. Stock a book on building PCs and a book on upgrading and repairing PCs in order to grow that market. Limit the selection in order to accommodate the limited space in most stores, but carry one or two of everything that’s needed to build a PC, or to upgrade or repair a PC when the competition is closed.

Deciding exactly what to carry could be difficult, but a safe and non-creative approach would be to just pick a couple of price points and sell whatever they can find at that particular price point while remaining profitable. Keep it simple, using multiples of $25. Have computer cases priced at $50 and $75. Have power supplies for $25, $50, and $75. Have hard drives for $75 and $100. Have a motherboard for $100, and CPUs for $50 and $100. AMD or Intel? Carry both, or see if one or the other is willing to cut a deal to have an exclusive.

And this also opens the door to oddball gadgets and adapters, like 20/24-pin ATX converters, ATX power supply cable extensions, USB cable extensions, USB hubs, serial, parallel, and PS/2 to USB converters, and other small, profitable niche adapters. And if there’s room, of course they can carry an Ethernet switch, Ethernet cables in a variety of lengths, and perhaps even cable and DSL modems.

They can take the same approach to selling computer components as they’ve always taken to selling discrete electronics components. When I need a resistor or an LED, I can get it a lot cheaper by ordering it online or by driving to an electronics supplier. But I can be at Radio Shack in five minutes, and they’re open late and on weekends, so I usually end up going to Radio Shack and putting up with their cellphone pitches.

If they’re still able to eke out a profit selling resistors and heat sinks by virtue of being the most convenient option, I think they can do even better selling computer components the same way.

And that would still leave room in the store for cell phones, the odd adapters and components that no other major retail chain sells, and cheap R/C toys.

I think it’s a better plan than officially unofficially renaming itself to Shack (next door to Hut, where you buy pizza) and harassing customers about cell phones at the checkout.