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I Don’t Think Gillette Would Complain If You Used Their Blades Without Their Razor

Posted by on | April 24, 2017 | Comments Off

Apparently it is some kind of scandal surrounding Juicero, who I must admit I have never heard of until the recent spate of coverage.  In an emulation of Keurig, which I also know little about since I am not a coffee drinker, they have this juice-press thing that sells for $400 and that takes $7 proprietary bags of fruit or vegetables or whatever that the machine squeezes into juice.  Apparently, the scandal is that you can squeeze the bags just as well without the $400 juicer.

To which I answer:  duh.  I will bet my Harvard MBA that this company’s business model really does not anticipate making most of its money from the machine.  The machine itself may actually not have any profit margin at all.  The bags at $7 certainly do.  The machine is the excuse for you to buy lots and lots of their high margin juice bags.  If you buy one a day for a year, that is over $2500 of revenue at a high margin vs. the original equipment sale of $400 at a low or no margin.  Telling this company their machine is not necessary is like telling Gillette you can use their $5 blades without having to use the razor that they pretty much give away anyway.

This is the job of capitalism:  I absolutely guarantee you that within 60 days someone will be selling hand-squeezed juice bags for $5 each.

 I Dont Think Gillette Would Complain If You Used Their Blades Without Their Razor  I Dont Think Gillette Would Complain If You Used Their Blades Without Their Razor  I Dont Think Gillette Would Complain If You Used Their Blades Without Their Razor

 I Dont Think Gillette Would Complain If You Used Their Blades Without Their Razor

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