Originally Posted by Paul Markham

None of you are even close.

It was the rental market. In a couple of years the rental business over took the sales of VHS. For every guy who would buy a tape to own 100 would rent it. Or numbers close to it. The cost of a shop buying a VHS tape to resell was often 1/10 of the cost of buying one to rent out.

It was not a fresh 100 guys coming into a porn shop on impulse, it was the same 100 guys coming in night after night to rent. It was a repeat buying business with the client getting what he wanted and the selling earning over and over again. The money rolled in in small amounts and many grew very rich. Some became millionaires many times over.

They did not bother collecting, storing, copying or even remembered what they rented last year. They just spend a little bit of money to satisfy a short term need.

We need to learn from that.

Some still think the profit is in hitting a guy once for $50 when he would happily pay $1 a hundred times. Figures are to illustrate the point. You know what I mean.