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This is why some startups report being "contribution margin positive". That is to say: the unit economics of selling a widget are profitable when you consider the direct cost of sales (usually some combination of: marketing, components and materials, projected lifetime cost to serve if there's any subscription component), but excluding the significant central office costs.


E.g. Tesla. To be fair, a lot of their "central office cost" is R&D, but that was also probably true for Pebble.




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