New York (FORTUNE Magazine) � In late 1995, six months after Toyota decided to move forward with its revolutionary hybrid, the Prius, and two years before the car was supposed to go into production in Japan, the engineers working on the project had a problem. A big problem.
The first prototypes wouldn’t start. “On the computer the hybrid power system worked very well,” says Satoshi Ogiso, the team’s chief power train engineer. “But simulation is different from seeing if the actual part can work.” It took Ogiso and his team more than a month to fix the software and electrical problems that kept the Prius stationary. Then, when they finally got it started, the car motored only a few hundred yards down the test track before coming to a stop.
It’s hard to imagine Toyota (Research), with its aura of invincibility, running into such trouble. But the story of how it brought the Prius to market — a tale of technological potholes, impossible demands, and multiple miscalculations — reveals how a great company can overcome huge obstacles to make the improbable seem inevitable. The gas-electric auto represents only a tiny fraction of the nine million cars and trucks the Japanese company will produce this year. But it is the first vehicle to provide a serious alternative to the internal combustion engine since the Stanley Steamer ran out of steam in 1924. It has become an automotive landmark: a car for the future, designed for a world of scarce oil and surplus greenhouse gases.
Category: Culture
Plus Shipping and Handling……, Making Money on eBay
Would you rather pay $10 and have free shipping or pay $5 and pay $6 for shipping? Answer: you prefer the latter. Well, at least if you are like most bidders on eBay.
Morgan and co-author Tanjim Hossain, an assistant professor at Hong
Kong University of Science and Technology, held 80 auctions of new
music CDs and Xbox video games to test how consumers respond to
different price schemes. In the eBay study, they varied the opening bid
price and shipping charges on identical CDs, ranging from Britney
Spears to Nirvana, and video games, including Halo and NBA 2K2.…A
perfectly informed and fully rational consumer will merely add together
the two parts of a price to obtain the total out-of-pocket price for an
item and then decide whether to buy and how much to bid based on this
total price.But that’s not what happened
in their eBay auctions. Instead, they found that lowering the opening
bid price while raising shipping charges attracts earlier and more
bidders and ultimately leads to higher revenues compared with doing the
reverse. Those findings suggest consumers pay less attention or even
completely overlook shipping costs when making bids…The quote is from a writeup, the full paper is
…Plus Shipping and Handling: Revenue (Non) Equivalence in Field Experiments on eBay (subs required).Also check out the interesting data on online pricing at Nash-equilibrium.com.
Popup Stores
Much has been written about pop-up stores and they are usually placed in the context of being something of a fad or fashion in retail. However, even if it is hidden, there is a powerful idea behind most of these initiatives and that’s to provide “brand refreshment” and “brand excitement”.
The temporary and unique nature of these stores gives people a reason to visit and take note. Influx believes the idea inherent in the pop-up is one of temporary surprise (great in an A.D.D. world) and that can be very impactful as a communication tool, especially as it’s a three-dimensional experience.
Local Primary & The Tunnel
Wow, what a disturbingly sad turnout. This is what democracy looks like?
Meanwhile, I watched “The Tunnel” last night, which is must see for anyone living in a free society. Well done, with a few Hollywood additions apparently.
Milwaukee Ranked #7 in Overextended Sports Markets
The study by American City Business Journals, parent of the The Business Journal Serving Greater Milwaukee, looked at 179 U.S. markets and analyzed the amount of personal income each region generates, among other factors, to measure the region’s adequacy for its current professional teams and any possible new ones in baseball, football, basketball, hockey and soccer.
Milwaukee’s total personal income of $75.7 billion, according to the report, is insufficient to support the addition of any more professional teams.
Powerbook Tattoos
Too Funny…. Laser Powerbook Tattoos. via Virginia Postrel
BMW Audio Books
Put on your seatbelt and prepare for highs, lows and plenty of twists and turns. BMW, in conjunction with Random House, brings you BMW Audio Books, a unique series of specially-commissioned short stories showcasing the work of some of the finest contemporary writing talent. Each gripping tale is yours to download for free and a new book will be available to download every two weeks. Listen to them on your MP3 player, your laptop or ideally, in the car. So sit back, hit play and enjoy the ride.
Ford Selling the Fusion via Mockumentary
To promote its new Fusion sedan, Ford is airing a “mockumentary” online film series about a band of Norwegian performance artists who would give the Maytag repairman fits. The rock group Hurra Torpedo cranks out cacophonous tunes by smashing clothes dryers, kitchen ranges and what looks like an outboard motor.
By linking with the group, Ford hopes to attract consumers between the ages of 25 and 35 to the Fusion. Ford is sponsoring the three-man band’s U.S. tour. The promotion includes an online sweepstakes that will give away the red Fusion SEL the band is driving on the road.
Bill Graham’s Rock Archives Stream Online
Some of rock’s most intriguing content is now in cyberspace via the Wolfgang’s Vault Web site. The memorabilia seller offers treasures from the stash of promoter Bill Graham, programmer of San Francisco’s legendary Fillmore, who died in 1991.
A 75-song playlist culled from 7,000 to 8,000 vintage audio and video concert recordings made between 1966 and 1999 began streaming on the Wolfgang’s Vault Web site Feb. 8, at no cost to consumers. The owner of the Graham archive is optimistic that some of the seminal performances will make it to retailers’ shelves as CDs and DVDs by year’s end.
The Economics of Mulch
ST. FRANCIS: You’d better sit down, Lord. The Suburbanites have drawn a new circle, As soon as the leaves fall, they rake them into great piles and pay to have them hauled away.
GOD: No. What do they do to protect the shrub and tree roots in the winter and to keep the soil moist and loose?
ST. FRANCIS: After throwing away the leaves, they go out and buy something which they call mulch. They haul it home and spread it around in place of the leaves.
ST. FRANCIS They cut down trees and grind them up to make the mulch.