Re:Critics say WeWork is an overvalued real-estate play
by tptacek on Thursday October 19, 2017 @08:51PM
(#15512788)
We priced out comparables from similar vendors (I really liked those couches) and suffice it to say the unit costs you were getting were not competitive with Wayfair. They're high-end leather modular sectionals. It's not cheap.
So are the plastic chairs you get at Walmart. This is a fixed cost. Custom design them once, order a million of them and leverage economies of scale.
> Free beer
Beer by the pallet is $2.30 a can, rent is around $2200. Even if you drink 2 cans a day, its still only about $350 a month in costs. Even if it's a loss, it's a good loss leader and the economies of scale will eventually work out. Their potential for profit is when people start saying, WeWork, feed us! and they charge such and such to manage the whole food delivery and make a nice premium on that, and whatever other services you guys would want.