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chii • today at 1:23 PM • 1 reply • view on HN

Framework would have higher fixed cost compared to the incumbent manufacturers, if their number of customers are smaller. Therefore, to even get the same fixed margin, they'd have to charge a higher price (not to mention the same margin is unlikely to sustain them unlike the other manufacturers).

But with the current increase in prices of hardware, i expect people to start thinking about repairability and upgradeability, which would increase the total size of potential customer base.


Replies

graemep • today at 2:21 PM

Firstly, unless the manufacture themselves then the difference in fixed cost may not be significant. Its very unlikely that they are high enough by enough to require charging double. Most of the costs of manufacturing something like this will be variable cost.

This is also an entirely different issue from the lifetime value of a customer.