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> 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 o
by 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 agoAh, I wasn't thinking about their commercial business. I can imagine how that would be more price sensitive.
- syncmaster913n 8y agoAh, got it.