Thread: PHS, Really?
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Old 08-21-2013, 12:30 PM
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68gtoMN 68gtoMN is offline
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Join Date: Nov 2005
Location: Minneapolis Area
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For all who complain about the service being offered, I proffer that you have unrealistic expectations. It would appear that the expectation of complete and perfect information exists and should be available in real time. Well, that's not a valid assumption. As has been explained above (two PHS history pieces), this was not a business venture that was planned from the beginning; rather, it was a confluence of circumstance and a passion for the hobby. Had it been known that events at Pontiac would conspire to TOSS OUT the historical files, then planning might have been able to prevent it. As things stand, what was saved is what Jim has to work with.

There are mentions of expenses, machines and lawsuits. I know, in having spoken with Jim on this subject, that he was subject to lawsuits from GM that cost him a small fortune to defend, was harassed and that attempts were made to "repossess" the records forcibly. Again, we are fortunate that he persevered and fought all attempts. He was finally declared the victor.

For all who whine about the cost, you need some basic lessons in economics, time value of money and opportunity cost. To be factual, one needs to look at an index of the dollar's value based on a given year and then compare that amount to the value of today's dollar (inflation/deflation). According to one calculator here, the value of $35 in 1980 is $83.67 in 2013. Using another calculator, the same $35 is pegged at $104 today. Either way, the real cost for services rendered is less today than it was when these packets were priced MUCH lower in years past.

Understand that with the advent of computers and the internet, microfiche machines are no longer mass produced and have become expensive to repair/maintain. The work is labor intensive. There are real costs.

All of this is presented as "the other side of the argument" when discussing a "business model". To complain about cost increases without understanding the underlying factors that affect pricing models is ignorant at best. What about staff costs? What about insurance? What about rent for the space? Machine repairs? Copier costs?

Now, consider how technology might have been employed to better this service and the pitfalls that employing new technology might add. Put on your business owner hat here - imagine that YOU own PHS...

With the "old" methods of using microfiche, paper copies and faxes, there exists only one copy of the records requested by any individual. They are paid for by one person and delivered to one person. They are not easily shared. To obtain information on a particular car, each person must pay. The value of the information remains intact.

Were one to consider digitizing this information (a colossal undertaking - conversion, error correction, indexing, user interface development, database development, storage, backup...), this effort would require a full-time staff and would cost hundreds of thousands of dollars. With this digitizing, there would now be more than one copy of the information and the issue of control/security/permissions is now a real concern. With computers, one owns a "manufacturing facility" where all data can be replicated and easily shared with countless people. Once "published" in digital fashion, the information could be accessible by untold numbers of people. At this point, as the business owner, you no longer control the means of production/distribution of your product (information) and, subsequently, the value of your product erodes quickly.

Is this a PERFECT service? Not even close. Could Jim improve his service? I believe so. Should he update his process to include disclaimers about early GTOs built at certain plants? Perhaps yes. There is always room for improvement. But remember, this is a valuable service that other hobbyists would die for. We are a bit spoiled when we complain about the cost because the "real costs", based on value of $$ over time, are well below market value and cost less today (in comparative terms) to the $35 we used to pay, etc.

This is just one guy's opinion. Feel free to disagree with me.

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