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I suspect one of the reason behind that is that the supplier is asked to provide a part that cost only a few thousands bucks, but could potentially blow a multi
by heisgone 2y ago
I suspect one of the reason behind that is that the supplier is asked to provide a part that cost only a few thousands bucks, but could potentially blow a multi-million rocket. So, each part end up having a sort of implied insurance and over-the-top quality control, to avoid liability. When SpaceX build something itself, it can evaluate the proper risk of each part and doesn't need to add unnecessary markup.
- eastbound 2y agoThat’s s problem in classic microeconomics: The right price is anything between the marginal cost of manufacturing and the total price of the rocket minus $1. Every parts manufacturer tries to extract as much as possible from the leeway in the middle.