
Tristan
36.2K posts

Tristan
@pollock
Scaling reindustrialization 🇺🇸 & advanced energy ⚡️ startups at @gener8tor 👉 https://t.co/mkm8K5qihl


.@ericries explains why former Costco CEO Jim Sinegal refused to raise the price of everything in the store by $.03, despite the fact that Costco knew it wouldn't decrease sales, and would increase their net income by 50%: "He says, 'It's like the business equivalent of taking heroin. You do it once, and then you got to do it again, and again, and again. Next thing you know, you're not the low-price leader.'" "You can get away with screwing people over. You always do it, no matter what. You raise margins. Margins are a source of strength." "But Costco is built on a very different philosophy, which is that margins can be a source of weakness. @JeffBezos understood it. He used to always say, 'Your margin is my opportunity.'" "When you're making too much money, when you are being too extractive, you're actually harming your competitive position in the long run." From his appearance on the show in May.








I support Reindustrialization, 100%. But a word of caution to my energetic friends in the space: it's not enough just to build here. Eg. "[manufacturing], but in the USA" is not a business model! Most manufacturing used to exist here. It died/left. Why? Answer the why and address it with a new business model that carves out a new moat, power, or structural change to the market. If you aren't doing something dramatically different, your young business will be battered by the same forces that killed the domestic market in the first place! Make your service differentiated compared to existing competitors. Provide a superior customer experience. A service that's "the same as China, but in the US" is going to fail.



🇺🇸 AMERICAN DATA CENTERS 🇺🇸 Excellent piece in FT by my friend @joshzoff arguing that the US can't treat data centers like we treated rare earths, and that data centers are a great way to finance development of a bunch of other advanced technologies (strong agree).









