As my colleague Tim Green pointed out in an in - depth article about Buffett's IBM investment, most of IBM's revenue comes from clients who use multiple IBM solutions, which creates
big switching costs (this is what Buffett means by «stickiness»).
Not exact matches
If not, you will no longer be able to rest on the laurels of barriers to entry, high distribution
costs, incumbent advantages like shelf space,
bigger advertising budgets,
switching costs, or just about any other advantage that you used to enjoy in years past.
But I
switched us to CreateSpace because the per - unit
cost isn't much more than going with a
big printer, the upfront
costs are way lower (maybe $ 250 vs $ 5000?)
The France international's future is in doubt at the moment as a summer
switch to a
bigger club looks likely, with Don Balon tipping him to
cost $ 100million.
And as Kris pointed out in her blog, with traditional
big publishers
switching over to electronic books and more print - on - demand books, they get out from under shipping and printing and warehousing
costs, and that ugly return system gets cut down.
While Amazon originally worked under the wholesale model, which afforded the retailer the opportunity to sell ebooks at less than their
cost in order to push sales of their Kindle e-readers, the alleged collusion between Apple and five of the
Big Six publishers actually refers to their
switch to an agency pricing model, which allowed publishers to set the price of the ebooks for the retailers.
Is it worth doing a
big switch (at the
cost of lots of commissions / triggering capital gains tax) for an advantage that might be fleeting?
If you are a
big contributor with a small portfolio and are keen (but not superkeen) to save
costs then it might make sense to start at a discount brokerage instead of at TD and then
switching.
If you want to start index investing with a couch potato portfolio, this was the best way to do it until you got
big enough to
switch over to a discount brokerage (and the amounts got
big enough to justify the transaction
costs.
Alternatively, if AT&T screwed up
big - time, I would do whatever it takes to
switch — no matter the
cost of the competitive carrier or the hassle of
switching.