NFT Insight: Apple can allow people to bid for a good or service

[integral]

The REAL reason NFTs are the FUTURE

Transcript: 

In this episode we are going to ask the tuff question?? Do NFTs really have value? The short answer is yes but not for who you think… First let’s discuss one of the largest problems in all of marketing… what do you charge clients? As a business you would love to charge clients what their willing to pay.. but most items are priced for what the last purchaser is willing to pay… What does that mean? It means that for every dollar a product goes up there are a number of potiential purchasers that will choose not to buy the product because it’s too expensive. Likewise when products go down in price more purchasers find the item a steal and volume sales go up. Here’s the issue… if an iPhone sells for $1,000 and there are 100m people willing to pay that price Apple must sell all versions of the iPhone at $1000 But what if there were 50 million of those peeeps willing to pay $2,000 while the other 50 million willing to only pay the $1,000. Well, Apple would have increased its profit by $50 billion. This is called the dynamic pricing problem… and it’s puzzled retailers for a very long time. Some industries are better at dynamic pricing… ever bought an airline ticket online??? Prices can vary dramatically and if you’re browsing on a rich persons IOS device expect to pay more than the peasants running Android or Microsoft. Some vending machines even charge more for soda based on the temperature. So how do NFTs solve this problem for retailers? Well… now Apple or a car manufacturer can create an NFT in limited quantities allowing for purchasers to bid for the good or service… of course there will have to be a healthy dose of manipulation of emotions to trick people that the NFT may go up in value and of course they will say limited edition etc… But if retailers can pull it off it will make them hundreds of billions of dollars… So who wins… large corporations and shareholders… who loses? All those rich peeps who were paying far less than they were willing to for the same product. Other examples of dynamic pricing are utility companies charging more for peak usage hours. Let’s check out a couple examples: Coachella is creating a few NFTs for lifetime passes to their events… these will be auctioned off and the NFT can be sold to anyone in the future giving the appearance of an investment. Why do I say appearance of investment? Because logic would tell us that the value of all future Coachella events will go down as time goes on… why? Because the past events aren’t included in the future. Therefore the NFT should have its maximum value prior to the first event.. make sense… if you don’t think so be careful cause you’ll get scammed Homes are also being auctioned off as NFTs… o can your the little guy benefit by creating or purchasing NFTs?  … the answer is simply no… Just like the gold rush… the little person lost everything on average and those that sold the pic axes and shovels were the millionaires. Stay away.

• Dynamic pricing problem
• What do you charge your clients for the products you sell?
• If iPhone sells for 1000$ they have to sell that same price to everyone, but some people are willing to pay more
• How can apple figure out how to change people willing to pay more?
• Solutions NFT can increase profits by billions
• Apple can allow people to bid for a good or service or allow room for the product pricing to move dynamically like a stock
• All company products can work this way, maximizing the highest price people are willing to pay for a product

Edited February 15, 2022 by integral

[Yarco]

This basic idea can already be done without NFTs.

It's how humblebundle.com got big. The problem is the "Pay What You Want" model requires consumers to be honest about how much they're willing to pay. Plus if it's truly "pay what you want", some people will opt to pay $0.01 (or your set minimum) for your product while others will overpay the retail value. You're basically hoping that people are overall good and you'll end up getting more instead of less. Normally you have to incorporate charity in some way to get people to buy into this model as well.

You could also hold a "dutch auction" where you start with a high price and lower it until people start accepting. But as a consumer this would be annoying. I don't want an eBay auction every time I want a new phone or gaming console, I just want a Buy It Now button.

Even with all the information that Google has collected on you, I don't think they have enough to guess your max price that you're willing to pay for a new product. I think the inefficiency would be so great for now that you'd lose more demand than you'd gain from increased prices. Even if they did it, I'd just make a new browser and do stuff to fill it with cookies that make me look like a poor person and use that dedicated browser for all my purchases.

Also for luxury items like new iPhones it's one thing, but it'd be super unethical to start auctioning off basic necessities like food, especially during a time of scarcity.

Plus 100M people aren't all willing to buy an iPhone on launch day. That's over several years of the product life. So sellers are already kind of doing this. The price of stuff already tends to drop a bit as it gets later in its life cycle.

Edited February 15, 2022 by Yarco

[integral]

@Yarco For many products that have shortage issues like graphics cards being overpriced doe to miners buying them all up. Right now Nvidia is only profiting from the initial sale of the card and early buyers of the product are selling in on kijiji for 5x the price.

• Instead Nvidia could take all the profits for the second sale. They essential mispriced there product because there product does not adapt to its environment automatically, is how im understanding it right now.
• They could also profit vai royalties on all secondary sales using NFTs. 
• Imagine if all cars sold today where linked to a NFT, every time a car is sold 10% royalties goes to the manufacturer! NFT will provide new avenues for companies to milk every last drop they can from us. 

On 2/15/2022 at 11:05 AM, Yarco said:

Also for luxury items like new iPhones it's one thing, but it'd be super unethical to start auctioning off basic necessities like food, especially during a time of scarcity.

Maybe today but it becomes ethical if it becomes a cultural norm. It only takes 1 generation. Look at cleaning products for example, basic marketing to make every human believe poisoning your home equates to cleaning. 

Edited February 20, 2022 by integral