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> Still, for the 787, HCL gave Boeing a remarkable price – free, according to Sam Swaro, an associate vice president who pitched HCL’s services at a San Diego c
by zaroth 7y ago
> Still, for the 787, HCL gave Boeing a remarkable price – free, according to Sam Swaro, an associate vice president who pitched HCL’s services at a San Diego conference sponsored by Avionics International magazine in June. He said the company took no up-front payments on the 787 and only started collecting payments based on sales years later, an “innovative business model” he offered to extend to others in the industry.
- sct202 7y agoHow is that allowed? It is like basically the equivalent of dumping products below market and production price like what China frequently does to steel.
- kevan 7y agoWhy wouldn't this be allowed? This is the company equivalent of a person working on commission vs salary. Salary is more stable and predictable, commission is riskier but has higher potential for upside.
- leetcrew 7y agoit's also the equivalent of what they call "royalties" in the music industry.
- jws 7y agoIt’s more like becoming a partner or working for shares. Rather than getting a fixed price up front you take a (presumably larger) payment at a later date but accept the risk that there may be no payment.
- gorbachev 7y agoYou just described Uber.
- z3t4 7y agoHow common is this, payment based on sales, and years later!? I guess you only do that with established companies? Still seems like a risk.