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Platforms and Power (with Hamilton Helmer and Chenyi Shi)
Acquired
What Is Your Surplus Leader Margin?
There is this concept that we call surplus leader margin, which is the maximum price you can charge more than your competitor while still maintaining your competitive position. That number is dependent on the differential scale you have against the other platform. Oncperners do it because when you see such a so large greenfield you can penetrate, you should grab that and sacrifice short term margin for a larger market share. And dial up the tune when it's the right time.
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