2 ms·
The point is not that they cant afford the license its that when they are selling their own products for hundreds of dollers, probably with $50 or more profit m
by alt227 3y ago
The point is not that they cant afford the license its that when they are selling their own products for hundreds of dollers, probably with $50 or more profit margin per unit, then making $2 profit per unit on a strap after licensing costs is not worth the manufacturing investment for such a big company.
- reaperducer 3y agoI can just imagine Maude Flanders: "Oh, won't somebody think of the profits!" not worth the manufacturing investment for such a big company. Isn't the whole point of being a big company that you can make big investments that a small company can't?
- ghaff 3y agoIt's complicated. You can make larger investments. But, while you may have economies of scale for certain things, you probably also have overheads up and down and across the company for everything you do.
- sokoloff 3y agoBeing a big company may help in a lot of ways: easier/cheaper to re-use existing expertise, ability to make a larger number of speculative investments, often greater brand awareness, ability to sell products to an existing customer base, and others. It doesn't help nearly as much to overcome fundamentally unattractive unit economics (unless scale can make them later become attractive).