4 ms·
In 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
by slantyyz 5y ago
In 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 5y 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.