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It's a fundamentally awful business. If you make a good product and just sell it you get a one time payment and you have a brand that one one cares about becaus
by danielmarkbruce 2y ago
It's a fundamentally awful business. If you make a good product and just sell it you get a one time payment and you have a brand that one one cares about because you are a one time decision every x years. You don't "consume" it, there is no "new fashion". One time payment, and not a big one.
So, companies try to avoid this fate by doing things which make for a better business - but invariably are bad for customers. In most cases, if you come across something awful like this, it's because just doing the right thing for customers doesn't make any money in that particular business due to the nature of the product and buying process.
- sureIy 2y agoLook at Bang & Olufsen. You can definitely produce high quality goods that last decades and update them regularly because they're simply beautiful. My father's 1995 model is still in use to this day. Granted, they're insanely high priced, but that means they also sell very few. There must be a middle ground.
- danielmarkbruce 2y agoThe market cap of BO is ~US$250m. That's made up of a product line that includes more than speakers. It's 100 years old. They aren't profitable. It's a great example of being in an awful industry. Personally, I applaud them. But it's hard for a business to point to them and say "See! We can do that!". Investors will run.