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melm00se

(4,989 posts)
8. Having done government business in the past
Mon Oct 22, 2018, 02:27 PM
Oct 2018

I know that companies will make a strategic pricing move (at or below cost) to secure a high profile customer that they can use and say "see? we got an award from ______ so you should do business with us!".

Winning a bid the profile of the NYPD can really help a business kickstart their operations especially if they have VC money behind them. Take a 40-50-60% loss with a $6.4M win but that generate $30 million in new business at 30% margins...smart move.

Unfortunately, something like exploding batteries could really do a number on future sales.


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