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Keurig's model for hardware startups
- danvoell 11y agoWas it an accident though?
- nissehulth 11y agoAnd is DRM really part of the perfect business model?
- sp332 11y agoNope. "Quite honestly, we were wrong." http://techcrunch.com/2015/05/08/keurig-ceo-blames-coffee-pod-drm-for-falling-sales/ http://techcrunch.com/2015/05/08/keurig-ceo-blames-coffee-po...
- knodi123 11y agoThe continuation of the quote paints it in a slightly less humble light: "Quite honestly, we were wrong. We didn't think our customers would notice how they were getting screwed."
- nqzero 11y agonope - monopoly by design
- AceJohnny2 11y agoWhat, no mention of Nespresso (invented in '76) ? Is it just because the american startup audience is more familiar with Keurig? I do like his core point that the Keurig (/Nespresso) business model is psychologically different from razor+blades. I understand 3D printer manufacturers have also been trying to apply it, to limited success: the primary audience of hackers and tinkerers are by nature adverse to embracing such a business model.
- guelo 11y agoI think what he's calling a new business model is charging more for the razor than the traditional razor and blade business.
- allworknoplay 11y agoYeah, not to be negative, but even if he doesn't get razor/blade there's printer/ink. It's perfectly established.
- pyoung 11y agoThere is some funny math going on here. You are comparing single use consumables against multi use consumables. I can use a water filter for a few months before I need to replace it. The equivalent amount of k-cups (a few months worth) would be in the $100's (at least at the rate that I drink coffee). Additionally, most people probably buy bulk boxes of k-cups (in the $40 range), so the psychological argument isn't particularly valid (at least when comparing to the cost of the equipment price).
- omonra 11y agoSo the entire point of the article is that the price ratio of one coffee pod to the cost of the machine is much greater than the cost of printer cartridge to the printer itself? Hence consumers don't balk at paying for the consumable parts?
- kaonashi 11y agoSo the perfect business model is one that hides as much pricing information from the consumer as possible.