Sentences with phrase «expensive point in the cycle»

Not exact matches

The four critical factors are: (a) businesses with recurring revenue bases — like a renewable subscription — are far better than ones dependent on constantly securing new customers; renewals are much easier and less expensive to secure than new sales; (b) customer retention is absolutely critical — all customers are very costly to acquire and very easy to lose in a world of almost infinite choices; (c) businesses based on products that require constant replacement or renewal (the «razor blade» model) are much more attractive than durable goods businesses (like selling refrigerators) where the products have very long repurchase or replacement life cycles and where the market could even fairly quickly reach saturation points; and (d) businesses that offer products or services that had a predictably high rate of obsolescence were much more attractive than those where the products had long, useful lives.

As alternatives are exploited — bringing economies of scale into play, to make them less expensive per unit — demand for carbon - based fuels, solvents and components of processes that end up in the atmosphere drops, resulting in lower prices for carbon products and eventually resulting in a point of diminishing returns to further price level increases in the carbon cycle fee..