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by HeyLaughingBoy
28 days ago
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Custom machine building is a very difficult business to be in. As you mentioned, it's hard to scale. I knew of a particular service provider (custom motion systems) whose philosophy was to break even on the first job and profit on any followups. |
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It's called Learning Curve Based Pricing / Experience Based Pricing First popularized by BCG (Boston Consulting Group) and Texas Instruments
https://commoncog.com/c/cases/texas-instruments-learning-cur...
Helped Texas Instrument become what it is, and dominate the decade that it implemented this strategy against its peers.
The guy who invented it there, was who later founded TSMC Morris Chang