Today, High Hopes spends a few hundred bucks a month (give or take) on each of a number of different software services.#
Each of them seems like a very reasonable expense, but when you add them together, it's a lot.#
I'm no economist, but Dutchie's acquisitions of LeafLogix and Greenbits looks to me like moving in the direction of value destruction.#
The idea here is that when Dutchie has enough different services under its umbrella, it can bundle them together and charge us less than the total we were paying for the separate services.#
The value destroyed is more or less equivalent to the sum of the revenue streams of the separate companies minus the revenue stream of the company that did all the acquiring and bundling.#
But Dutchie will still be making more than they made when all they had to offer was online ordering and menus! And no one else will be able to compete with that kind of an offering at that price point.#
It's kind of a pendulum swing, because after all that value is destroyed, the stage will be set for another round of innovations, like a forest fire clearing the way for new growth.#
Today, High Hopes spends a few hundred bucks a month (give or take) on each of a number of different software services.#
Each of them seems like a very reasonable expense, but when you add them together, it's a lot.#
I'm no economist, but Dutchie's acquisitions of LeafLogix and Greenbits looks to me like moving in the direction of value destruction.#
The idea here is that when Dutchie has enough different services under its umbrella, it can bundle them together and charge us less than the total we were paying for the separate services.#
The value destroyed is more or less equivalent to the sum of the revenue streams of the separate companies minus the revenue stream of the company that did all the acquiring and bundling.#
But Dutchie will still be making more than they made when all they had to offer was online ordering and menus! And no one else will be able to compete with that kind of an offering at that price point.#
It's kind of a pendulum swing, because after all that value is destroyed, the stage will be set for another round of innovations, like a forest fire clearing the way for new growth.#