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by mikeyouse
4422 days ago
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The good thing about trying to size a market with only a few major players is that all of the expenses are obvious. Auto makers typically have COGS nearing 80% of their revenue, so for that $375B in annual sales, you'd see $300B in annual COGS. Some of that is in-house but much of it is spent on suppliers and the rest of the value chain. It's obviously easier to make a MVP of a chat app than to design a ML painting algorithm to save 1% in paint every year (or whatever the specifics may be), but there are definitely opportunities there if you're looking for a 'big market'. |
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- developing the algo (ie knowing the domain intimately) - verifying the algo against the four major robo-paint-arms in production (probably more) - meeting the safety testing criteria (expensive) - demonstrating the savings in paint vs cost of other expenses (ie we save 1% paint but the stop start nature clogs up 10% more often which is a manual fix) - sales and marketing
wow, I just see problems don't I ?
But compare that to "If you tie this box to every cow, you will be able to tell which ones are active, which lethargic, which have eaten grass from the top of the field and can then sell their milk for more"