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Sorry, it doesn't work like that in real companies outside those with margins that allow them to spend money like drunken sailors. In the vast majority of comp
by rebootthesystem 11y ago
Sorry, it doesn't work like that in real companies outside those with margins that allow them to spend money like drunken sailors.
In the vast majority of companies, spending eight to ten times more for anything means cash isn't available for something else. In some cases this can be as important as having cash reserves for when things don't go so well or being able to hire more people.
Cash is like the blood that runs in the veins of a business and is pumped around to make it run. The cardinal rule is: You NEVER waste it. And that is certainly true for what I am going to call "real" businesses, in other words businesses that are representative of the vast majority of companies in the world.
Again, we are NOT talking about tech giants with 70% margins and money coming out of their pores. Companies like that exist within a different ecosystem. This is about what is far more common in business around the world, narrow margins that require management to be very careful about costs.
It is very typical to see opinions on HN that quickly reveal the poster has zero experience running a real business or have only run a software consultancy or something, SaaS or something of that ilk with huge margins. In other words, businesses you could run out of a Starbucks with a laptop, a co-working space with a few laptops or a small office with desks, a microwave, refrigerator and a ping-pong table.
Most businesses around the world are NOT like that. They are far from it. Want to open a fast-food joint? A million bucks to get started. And you better have a high net-worth. And, of course, your cash-flow will be significant and your product is perishable. Want to do a hardware startup as I have done more than once and manufacture your own electronics, mechanical components, service, etc. You need 10,000 square feet, half a million to a million dollars in equipment, insanely expensive software...and you haven't even started to develop your product yet.
So, no, most businesses won't pay ten times more for a computer that offers nearly zero added value because it would be utterly irrational and irresponsible to do so.