
Keurig's model for hardware startups - ppjim
https://medium.com/@BoltVC/keurig-accidentally-created-the-perfect-business-model-for-hardware-startups-18e9c3b4e796?id=1
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AceJohnny2
What, 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.

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guelo
I think what he's calling a new business model is charging more for the razor
than the traditional razor and blade business.

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allworknoplay
Yeah, not to be negative, but even if he doesn't get razor/blade there's
printer/ink. It's perfectly established.

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pyoung
There 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).

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omonra
So 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?

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danvoell
Was it an accident though?

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nissehulth
And is DRM really part of the perfect business model?

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sp332
Nope. "Quite honestly, we were wrong."
[http://techcrunch.com/2015/05/08/keurig-ceo-blames-coffee-
po...](http://techcrunch.com/2015/05/08/keurig-ceo-blames-coffee-pod-drm-for-
falling-sales/)

~~~
knodi123
The 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."

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kaonashi
So the perfect business model is one that hides as much pricing information
from the consumer as possible.

