RSS- “BYD is launching its next-gen Blade EV battery soon with more range and even lower cost”
- Iran launches air attacks on Israel
- ISW on the developing Ukrainian defense industrial base and Russias strikes on the Ukrainian energy infrastructure
- Britain? Kaput! By Walrus.
- Declaration “Dignitas Infinita” on Human Dignity
- The situation and some possible courses of action … A Pat Lang post reposted from 26 February 2022
- HARPER: COL. W. PATRICK LANG R.I.P.
- A Note On Our Folly By Walrus
- Israel attacks Iranian embassy in Damascus
- He is risen…
Having been in management of one of those “give away the razor, sell the blades” it looks like they are using the most common marketing strategy.
You estimate what the manufacturing cost will be at the time you reach full production. This is much less than the initial cost, and as the article indicates, their manufacturing costs are steadily falling. You sell all the units at that cost from the beginning. This way you eventually are running the factories at break even, which avoids unwanted financial problems. Perpetual loss looks bad in many ways, but breakeven is OK in the eyes of bankers and bond holders.
You take all your profits in the services, and cover all the marketing, services, admin, etc. costs out of service sales.
This approach looks good to banks, bondholders, and stockholder.
Thanks for the link Pat. I never tire watching these events. “This marks the 79th successful landing of a booster stage and the 7th landing of this particular booster.. ” . I’m blown away by the success of this project and wish it the best fortune.
p.s. why don’t they just say ‘normal’ instead of ‘nominal’? I thought they meant they same thing but maybe ‘nominal’ is a bit more techo (or NASA-speak).
Rob
“nominal” means in accordance with plan. “normal” means “whatever usually happens”. In olden days, rockets usually blew up, so nominal was not normal. These days, many launches have different flight plans, so nominal is sometimes not normal.