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hmm. So they could be losing money on each launch? But, why would they would they choose to sell at a loss when they could beat the competition at twice the pr

• Traster 8y ago
  I don't beleive this, but it's possible that SpaceX are selling launches at below cost to drive demand so that they can get up to a scale where they're economical and in order to establish a dynamic in the industry where known low cost launches enable new projects that will cause higher demand in the future.
• syncmaster913n 8y ago
  > But, why would they would they choose to sell at a loss when they could beat the competition at twice the price? Because they promised to cut prices by an order of magnitude. Following a promise like that, you can't just offer a 10-15% price reduction. Plus, if they offered at twice the current price, I don't believe they would be competitive. Part of the reason they offer a low price is that they have still-new, not-fully-tested technology. Clients accept the increased risk, but they expect significant savings in return. Also, for certain flight configurations, SpaceX's pricing isn't particularly competitive even at its current level.
  • roedog 8y ago
    Ah, I wasn't thinking about their commercial business. I can imagine how that would be more price sensitive.
    • syncmaster913n 8y ago
      Ah, got it.