ATLANTA -- "Henry Ford was roundly criticized for saying you could buy a Model T in any color as long as it was black," Michael Bloomberg told an online newspaper conference here on Thursday. "He was right, though." Mr. Bloomberg’s
excellent adviceWhat Ford didn't realize was that the market changed forever when the competition offered a green car. "Ford should have said: 'You want green? We'll give you a hundred different shades of green!' "
Today's online journalists give news away. Who better to advise them than the founder of one of the world's most profitable information empires? Banks, brokerages, governments and news organizations use Bloomberg's global service -- 100,000 subscribers paying as much as $1,225 a month.
People will adopt new technology only if it adds value to their lives, Bloomberg says. Today, sated by innovation, we're less willing to buy the latest, fastest, most feature-packed gadget. That's why PC prices are falling. Older models are adequate so why buy a new one?
The same applies to health care, he says. We used to think our family doctors were special, but now we can't detect an appreciable difference between fee-for-service and cheaper managed care. When the competing product is adequate, buyers will move from the more expensive to the cheapest.
Yet, nobody wants to compete on the basis of price. You can win the business and still lose money. Bloomberg's advice: "Convince customers your product is worth more."
John Flanagan is editor and publisher of the Star-Bulletin.
To reach him call 525-8612, fax to 523-8509, send
e-mail to publisher@starbulletin.com or write to
P.O. Box 3080, Honolulu, Hawaii 96802.