David Rosenthal: belief

Transcript context

…Ultimately it’s scale economies. Everything about this is the same scale economies as Costco. They take every dollar that they’re not shipping up to one of the two foundations, they’re not using to try to figure out e-commerce, and they try to deploy it in how do we further increase our fixed cost base to reduce variable costs. What are the ways in which we can design it better, or manufacture it better, or invest in another factory, or something to reduce the price for customers over time. I think that really is the only one that matters. I was tempted to say, oh, brand’s important here too. Yeah, the IKEA brand. Great. But compared to scale economies. Well and the definition of branding is that you’re willing to pay more for it because it’s from that brand.…

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