Ask HN: Any business models for providing low cost services in a costly market? Uber and Airbnb provide services by reducing cost associated with 'hiring a cab' or 'renting a place'. On the other hand we have hotels and city cabs which charge more and attract people. I am trying to learn and/or share what successful business models 'startups or companies' use to sell products in a market where the costs are always high. Below are 3 business models that i thought would help as a starting point- 1.) Airline - Airlines tickets are pricey. To overcome this, airlines introduced options where we pay for luggage and seats separately. This made tickets look cheaper while reducing overall cost in a pricey and competitive market. 2.) Phones - Phones are expensive. To over come this,phone companies offer payment plans thus making it easy to buy one while the cost of mobile phone is still higher. 3.)Food - Making food in bulk is cheaper. But we do see lot of meal service companies failing. Not sure what can be the best model here as users tend to stop using meal services after certain point in time. |
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