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Salami is more expensive when you sell it sliced

March 11, 2018

 

I gave a few days of training for a Swiss Business School last week, and as I was explaining "Appear Here" business model, and using it as an illustration of quickly/cheaply testing a non-digital business idea, one of the students came up with this great summary: “Salami is more expensive when you sell it sliced".

Let me give you a few more examples :

  • Real Estate : My friends at London Nest, like Appear Here for retail space, are renting student accommodation space “long term” from bulk lenders, and rent it “short term” to individual students. Their business relies on selling enough "slices" so these revenues cover the cost of the long term rent + their operating costs.

  • Music: You used to buy LPs for a cheaper price that buying each singles from the album – yes this one is for pre-Millenials only - :D.

  • Mobile: Voicecall/data will cost you more (per unit) if you use a pre-paid card than if you subscribe to a pay monthly rate.

  • Consulting: Accenture to McKinsey pay their employees a fix yearly salary and sell them at a day rate to their FTSE100 clients.

Now, it’s up to you to play, think about a sector you know well: what could you buy “long” that you could then slice, and send the “short” pieces for a profit? Let me know if you hit something interesting, and one of our Mighty Advisors will try you give you a hand

Speak soon,
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