To beat Amazon, brick and mortar retailers need to raise prices

Brick and mortar retailers need to figure out a way to compete with Amazon and other e-commerce giants that doesn’t eat into margins. Deals and coupons simply aren’t enought. And as former Apple retail chief Ron Johnson has said, retail isn’t broken, stores are. So how are retail stores going to survive? While mobile may be the technology e-commerce companies are using to jab physical stores, it is also the technology that may save these stores. Personalization and data are the two key factors that could save retail stores; and the vehicle by which these technologies can be utilized is via the mobile phone.

Retailers are convinced that to beat Amazon, they need to match or beat them on prices. This is wrong. There is much more to Amazon than just low prices: it's about the overall experience.

Amazon has more reviews than any other, fast and friendly customer service, quick shipping, no hassle returns, and something you can't measure in dollars: a brand I trust. Other retailers aren't able to match this.

But it gets even worse for them: it's impossible for them to compete on price. Amazon doesn't have the overhead of physical stores. And Amazon's core competency is operations: they take a data driven approach to shave pennies off everything they sell.

Through operational efficiencies and sheer volume, Amazon can sell items for less than anyone else.

To compete with this, I believe other retailers need to take a completely different approach. They should raise prices and differentiate their offering. They need to change the game so consumers can't compare apples to apples against Amazon.

Retailers need to add value over the Amazon experience, in ways that a purely online store can't: instant gratification, easy returns, knowledgable in store staff. Make in store shopping awesome again.

One great success story of charging more and winning is crutchfield.com. Almost everything they sell can be purchased on Amazon for 10-30% less. But Crutchfield offers service that people are willing to pay for.

Sears was once a brand people trusted. Now they have one of the worst shopping experiences in the world. They are shutting down stores because of a slow holiday period.

I'm ok living in a world where I buy everything I need from Amazon. But if other retailers want to stand a chance, they need to change the game.

Why you need a "product guy"

[There's] a fundamental misunderstanding of what it means to do product. It is not code for a person who doesn’t really know how to do anything but thinks he can boss engineers around. It doesn’t refer to marketing guys who had an idea. Understanding what it means to drive a product means understanding the full scope of the vision of your company. It means understanding your engineering team, their capabilities, and their priorities. It means understanding what your next move is, and what your 6th move is from every angle.

I used to think product managers were worthless. Engineering run companies are the way to go! And why not? I was an engineer with an idea, and it turned into Posterous. When someone would approach me to be a "product guy", I laughed. Especially if they had no engineering background or track record. What do you know about shipping a product?

Now I know better. A product manager's job is not about coming up with all the ideas and telling engineers what to do. It's about running a process to make sure the best ideas wins.

And a designer is not necessarily a product guy. They are different roles.

A good product guy knows your product and your market inside and out. They live and breathe metrics and industry trends. They look for market and revenue opporunities.

A good product guy takes ideas from the entire team. They talk to users and partners. They put it all together to come up with a great plan.

When starting a new company, you can build the most random thing ever and see if it sticks. You have no users, there is little risk.

But once you have users and investors, you need to take educated risks. That's not a bad thing. But it's not as easy as it sounds.

A good product guy will work his ass off to figure out the next 6 steps for the company, and beyond. And when you do take the big risks, he'll have a better idea of what to expect.

A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.
Wayne Gretzsky

Sincerely

I love digital photography. Whether it's with my DSLR or my iPhone, I take a lot of photos. And sharing these photos online is why I started Posterous.

But I miss prints. I miss photos on the refrigerator. I miss photo books. And most of all I miss sending prints to friends and family.

And that's why I love Sincerely. They are bringing back the physical aspect of photography. Right from your iPhone, you can send physical prints to yourself and others.

It makes PERFECT sense. My iPhone is my camera, it's my address book, and it's a way to pay for things. It has all the elements you need to send prints in seconds.

Sincerely launched a new app today called Dotti. Dotti mimics a disposable camera. You take 12 photos, and then "develop" the roll for $5. Sincerely is doing a great job of adding beautiful interfaces on top of their apps.

Check them out!

Feature request: I'm still looking for a Sincerely app that sends 100% standard postcards: full bleed 4x6 on one side, and typical postcard layout on the back. Does this exist?

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We blink two-thirds less often when we're looking at a computer screen

If you work in an office, chances are you've experienced eye irritation, including eyestrain, dry eyes, burning, and light sensitivity. While there are many contributing factors to "tired eyes", the most important cause is that we actually blink two-thirds less often when we're looking at a computer screen. Since blinking is how our eyes keep themselves moist, that's a significant problem.

Other contributing factors include the fact that most of us open our eyes wider to look at computer screens, thereby worsening the dry feeling in our eyes. Extremely bright lighting in your office and an improperly set-up computer monitor can also cause irritation and strain on your eyes.

Working at a startup takes a toll on your body. Weight gain, lack of sleep, stress, carpal tunnel, and more.

My latest affliction is tired and irritated eyes. I thought I was just sleepy but I've been sleeping a lot. Going to try visine and see if that helps.