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> but in the end it basically guarantees that the service will be expensive because they have to make back that investment Isn't it exactly the other way aroun
by iguy 8y ago
> but in the end it basically guarantees that the service will be expensive because they have to make back that investment
Isn't it exactly the other way around? They bid high because they estimate that they will be able to make back the investment. The sole reason for making that investment is to sell it on to customers.
- jandrese 8y agoEither way they're expecting to make that money back in a reasonable timeframe. Eventually the costs need to be passed onto the customers.
- mcv 8y agoIt works both ways. They bid high because they expect to be able to made back that investment, but having bid so high, they also need to meet that expectation, or they're in trouble.