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Cash-wise, they get the profit margin off each sale (of course we don't know what that number is, but on pure volume alone based on this launch, it might be fai
by unavoidable 14y ago
Cash-wise, they get the profit margin off each sale (of course we don't know what that number is, but on pure volume alone based on this launch, it might be fairly substantial). But they also gain reputation, brand recognition, and may attract other VCs now that they are famous, and they also have the upper hand because they have a better bargaining position.
- grey-area 14y agoFor a hardware product like this, They also get a tested production system which has gone through all the initial snagging and is capable of churning out 100k products in x days, which is invaluable for a hardware startup and very hard to get in place without serious funding. Best of all, they didn't have to give away part of their company to do it by going straight to the customer. It would be fascinating to see a breakdown from pebble afterwards though to see what they felt the advantages and disadvantages are, and what they would have done differently.