4 ms·
My understanding of US economics is as follows: If it's so expensive that only large corporations can afford it, then you have to score some really huge relati
by quaquaqua1 7y ago
My understanding of US economics is as follows:
If it's so expensive that only large corporations can afford it, then you have to score some really huge relationships at the top of the company.
If you're targeting small businesses, then it basically has to be turnkey, affordable, and it must deliver basically 10x value overnight if it is to be really successful.
The reason I say this is because I used to work for a cash-strapped repair garage. Rent, Payroll, Materials, Debt. Those were the 4 major expense categories.
Rent was set in stone for years, and wasn't precisely negotiable. Likewise for debt. Materials would be difficult to innovate, because you are creating a physical product (oil, metal, plastic, etc).
The biggest cost-savings potential would be to replace labor. If you somehow made a robotic mechanic or robotic electrician, that would save a 1M USD shop probably about $300,000 per year in mechanic salaries. But at that point you are getting into fields of computer vision and also robotics, and those are most definitely hard problems to solve.
So to sum it up, your value prop comes from any technology that can feasibly replace human workers salaries.
- mtmail 7y agoI learned that the highest cost for gyms can be salaries. Not rent, equipment, power, heating, etc.
- quaquaqua1 7y agoSame with hotels for hospitality workers!