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But... Who are we to tell Younger & Associates how to run their business?


Let me try responding to JC's paean to laissez-faire business practices. I think there are several issues hiding in here, though my intent is more descriptive than prescriptive. But we'll rattle a few flower pots along the way and see what shakes out. :-)

1. If by 'telling Y&A how to run their business' one means telling them how to distribute their product, what accounting methods to use, who to hire, etc. then yes, of course, the commentors in this forum don't and shouldn't hold much sway or have a say. Someone starts a business and its their obligations and liabilites, profits and losses.

As far as product offerings, ie, quality, price, availability, etc. - who are we to speak? We are the marketplace. We are the customer. We are the means by which their motives (profit, etc.) are realized.

Does the business have the 'right' to a 'take it or leave it' attitude - an 'if you don't like it, don't buy it' viewpoint? Sure they do. Nonetheless, many companies find that listening to what their customers like and don't like is ultimately in their own best interest.

Which brings us to two more interesting issues: self-interest, and who is the customer.

2. The self-interest of Y&A is not the self-interest of their customers. Y&A is out to make a profit in their business so they can put food on the table, pay the rent, travel around the world, feel like they've accomplished something in life by promoting lighthouse preservation, etc. etc.

The self-interest of the customer is a trickier issue. The customer is interested in acquiring a lighthouse replica based on their desire to have something that pleases them. Apparently there are enough folks with this desire that several companies exist trying to fulfill it.

However, the self-interest of some people goes beyond the simple pleasure that comes from a lighthouse replica. Some people are not only willing to pay a couple grocery bags worth for a lighthouse model - they want their purchase to retain and preferably increase in value. Now why is this? *That* is a question the answer to which is very complex.

HL promotes its primary product as 'Limited Edition Collectible Lighthouse models'. These are manufactured rarities - that is, the product line is intended to be of limited availability and promoted in a way that people will want to own several (many) of these models. There are Collector Forums, a Collector's Society, Collector Clubs, Collector Events, etc. - all geared toward encouraging Collecting. Unlike, for example, Morgan Silver Dollars, HL models were designed from the start as Collectibles - they bear the characteristics of a thing manufactured for the express purpose of being both appealing in and of itself (aesthetics) and appealing for the liklihood they will retain or increase in value.

While HL doesn't openly talk about the secondary market, they and everyone else acknowledges that the success of their product results to a large extent on there being a post-retail mechanism for the value part of the equation to play out. There is no Scassis secondary market, there is not much of one for Lefton, or Spencer-Collins. The existence of a viable secondary market - and the rarity/valuation component it addresses is an absolutely essential ingredient to the success of Y&A. People might still buy them if there were not, but there would not be Collector Societies, Clubs, Events, etc. without it.

The self-interest of the Collector (the primary customer for the primary product line) wanting to see his/her collection hold and increase in value has become in conflict with the self-interest of Y&A. Or at least thats how I interpret the reason behind people waving placards (to use JC's notion) that say 'down with Glows' or 'reduce edition sizes' or whatever.

Y&A is trying to walk a very fine line - and to some extent they've been very adept at doing so. On the one hand they want to continue promoting and selling 'Limited Edition Lighthouse Collectibles' and on the other hand they want more than this. They want to make money selling other lighthouse model products. That portion of the Collecting community who hopes to see their purchase hold or rise in value is saying the products promoted by Y&A outside the realm of the LE models is not in their (the Collectors) self-interest.

Part of the conflict in self-interest comes from people buying into the notion of a Collectible. A notion that HL promotes. Again they don't openly say 'buy these models because they will be rare some day' - but their success is predicated on this being an inherent part of the appeal. (Again, without a secondary market, the Y&A company probably is much less viable).

So the placard wavers (I have been one wrt glows) don't really care whether Y&A thinks they have the right to say what they do - that community is saying what they believe is in their own best interest. Part of the passion behind this is because some of the Collecting Community has bought into the notion of these things as Collectibles - the very notion HL wants to promote. One might make the case that HL, with high edition sizes and look-alike Glows, is biting the hand that feeds them. Does HL have the right to do this - of course they do - youse pays yer money and takes yer chances - no one forces you to buy lighthouse models, much less nicely made ones from Harbour Lights.

So do the Youngers have every right to make whatever decisions they wish - of course they do and more power to them. But their business is based on that part of the human psyche that causes people to desire pretty things and especially pretty things that might increase in value. So whether they like having suggestions made to them or not, Y&A will simply have to put up with all the little monsters they've helped create. :-)

Of course there is a path before us where the self-interest of both parties can come more into alignment. That's another discussion...

3. So who is the customer? And what is the customer? The placard wavers are saying - hey we are your primary customer - we are why your business is successful. We have bought into the concept you have promoted and you have an obligation to us because of that. The placard wavers believe Y&A should not engage in actions that run contrary to the self-interest of Collectors of Limited Edition lighthouse models.

Y&A seems to be saying - welllll... yes, but ,,, we think we can have other customers and we're selling knick-knacks to these other customers because we can. (I'll bet they hate it when someone calls a Glow a knick-knack.) And the placard wavers are only a small percentage of customer base. And we listen to some of what they say, like not issuing a Glow before an LE. However, we've got profits to make here and we're not satisfied with those that come from our Limited Edition collectibles line. Unfortunately we haven't had much success with anything but lighthouse models, so we're just playing to our strength. This is little bit of what's behind JC's comment that: "Y&A has every right to capitalize on it's successes with lighthouses in whatever manner they want."

So what does it all mean? Jeez I don't know. I suppose its worth tossing out the question (for the dear few who have read this far) - does Y&A have any obligations to the Collecting community who primarily buys Limited Edition models? There are no warranties or compacts. There is (was?) simply the 'idea' that people hold in their mind about the value of these things. For several years the secondary marketplace reflected the reality of this idea. Today its saying there may not be as much lustre on the idea as there once was. Is this idea worth preserving? If it is (and I'm not passing judgement here one way or the other) then yes, perhaps all the parties to it - those that helped create it and those who participate in it - have a 'right' to say what is in its best interest. Course this ain't laissez-faire free enterprise which *is* the reality whether we like it or not.

Remember when in the fog to adjust your white balance,
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[This message has been edited by JTimothyA (edited 03-12-2002).]