2 huge warehouses full of old computers

Mark Linimon linimon at lonesome.com
Tue Oct 30 15:36:32 CDT 2018


On Tue, Oct 30, 2018 at 02:04:53PM -0600, Warner Losh via cctalk wrote:
> Yes, their business model is to sell a once common $10 part for $500
> because it's an exact replacement and the cost to warehouse it is dwarfed
> by the huge profit margin...

Before anyone scoffs, warehouse space is expensive.  It drove the
company I was last working for to move out of Austin.  Their business
was similar but more oriented towards e.g. getting newer machines,
disk-wiping them, and selling on eBay.  The selling prices are/were
competitive and so the margins were much lower.  Thus, they couldn't
afford to keep things around for years.

Two different business models.

mcl


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