My First Million - Nonprofit makes $90 MILLION per year selling barcodes
The video explains the invention of barcodes, which are used 6 billion times a day, by Norman Woodland and Bernard Silver. Inspired by Morse code, they developed a system using thin and thick lines to create unique tags. Concurrently, the invention of the laser provided a method to scan these codes efficiently. Grocery stores, struggling with manual inventory management, formed a committee to standardize product identification, leading to the creation of the barcode in its familiar rectangular shape. This innovation revolutionized inventory management and led to the establishment of GS1, a nonprofit organization that issues barcodes. GS1 has significant pricing power, generating $81 million in revenue last year by selling barcodes, highlighting the economic impact of this simple yet powerful technology.
Key Points:
- Barcodes are used 6 billion times daily, showcasing their ubiquity and importance in modern commerce.
- Invented by Norman Woodland and Bernard Silver, barcodes were inspired by Morse code, using lines to create unique identifiers.
- The invention of the laser enabled efficient scanning of barcodes, crucial for their adoption in retail.
- Grocery stores' need for efficient inventory management led to the creation of the barcode and the establishment of GS1.
- GS1, the nonprofit issuing barcodes, generated $81 million in revenue last year, demonstrating the economic value of barcodes.