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Independent Taylor distributors come out and get the service revenue, not Taylor corporate. Taylor corporate makes money from the parts that the distributors us
by 1123581321 6y ago
Independent Taylor distributors come out and get the service revenue, not Taylor corporate. Taylor corporate makes money from the parts that the distributors use, but new parts aren't required to work with the software. Taylor isn't internally structured to incentivize driving distributor revenue.
Taylor's McDonald's-only machines are different due to special requirements that come from corporate which ostensibly come from franchise meetings. They have zero ability to push a special machine on McDonald's without McDonald's being happy with the details of it. Taylor has to staff full-time people just to keep McDonald's happy; they are demanding.
That's not to say these heat-treatment machines were well engineered or field-tested.
(I've a lot of experience with Taylor and Taylor distributors through a vendor that sells to both.)
- slantyyz 6y agoIn the Wired article, the Kytch founder alleges that Taylor takes a cut of the distributor's profit from the repairs: The secret menu reveals a business model that goes beyond a right-to-repair issue, O’Sullivan argues. It represents, as he describes it, nothing short of a milkshake shakedown: Sell franchisees a complicated and fragile machine. Prevent them from figuring out why it constantly breaks. Take a cut of the distributors’ profit from the repairs. [1] 1: https://www.wired.com/story/they-hacked-mcdonalds-ice-cream-makers-started-cold-war https://www.wired.com/story/they-hacked-mcdonalds-ice-cream-...
- 1123581321 6y agoThe article is wrong about that as far as charging hourly for service. The profit share comes from OEM parts and from selling the original machine wholesale to the distributor. There is some shared sales & marketing expense between corporate and the distributors’ group as well, including marketing the benefits of the service network.