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The space is actually really crowded and relationships matter more than they should. Flex can’t charge a premium and die without the volume. Freight is a cost
by kirykl 9y ago
The space is actually really crowded and relationships matter more than they should.
Flex can’t charge a premium and die without the volume. Freight is a cost center. The absolutely largest buyers will use in house or demand lowest rates, small guys cant afford high rates.
Also owning equipment is righ risk low reward.
- stcredzero 9y agoAlso owning equipment is high risk low reward. The industry is already at the stage where the cost of financing is a competitive disadvantage. They're on the right track with vertical integration. But they'd need partnerships with manufacturing and finance to make things really work. Do they have those?