Jason Droege: evaluation

Transcript context

…So what I love about this is just a lens into is my idea good enough if studying, can I keep a high gross margin? Is there a reason why people in this space haven't been able to have a higher margin? Yeah, exactly. And like I said, it's meant to disqualify just you're doing these large for larger companies and everybody has ideas. And so, it's a way to cut through. Do you understand the machine that is going to need to be in place in two or three years? You might have a 70% gross margin now because the next question is why can't someone else do this? And if you have an answer of like, "Well, they can now, but they can't in two years, if we run really fast. " Okay, we might have something. If they can now and they will be able to in two years, you're going to have margin compression. Along these lines I was just listening to, I think it was the a16z podcast. Alex Rampell I think was sharing this story about Costco, how as you said, their strategy is actually to keep margins very, very low because all their revenue comes from their membership. So they have something like 50 million members paying 100 bucks a month and that's their entire business. And so, they don't plan and they don't want to make money off the products.…

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