I guess the presale is like a bet on Nectome’s future; you have a risk of losing your money if Nectome goes under + risk of being locked in if your preferred provider changes, in exchange for a future discount. At 3% inflation, 20k today is like ~27k in 10 years. I’m curious about the unit economics.
1) the presales themselves are limited in the total amount we’ll sell
2) we did the math and that price worked out to worth it for us given (1), and some conservative assumptions on when people would need to use them during the 10-year discount period (if someone uses the discount 5 years in, for example and the preservation market price is $250,000, then they would still pay $112,500 at that time. But yeah, I think it’s a good deal and priced fairly given that people buying it now are taking a risk buying it before we open.
+ risk of being locked in if your preferred provider changes,
The contract is transferable, so if Nectome becomes successful (many patients in the future) you presumably should be able to recover a large fraction of the contract value at that time.
(Obviously if the procedure becomes cheap then you won’t recover as much, but that’s inherent to the “pay far in advance for a discount on current prices” bet, regardless of your provider preferences changing.)
I guess the presale is like a bet on Nectome’s future; you have a risk of losing your money if Nectome goes under + risk of being locked in if your preferred provider changes, in exchange for a future discount. At 3% inflation, 20k today is like ~27k in 10 years. I’m curious about the unit economics.
Two points on why it’s such an extreme deal:
1) the presales themselves are limited in the total amount we’ll sell
2) we did the math and that price worked out to worth it for us given (1), and some conservative assumptions on when people would need to use them during the 10-year discount period (if someone uses the discount 5 years in, for example and the preservation market price is $250,000, then they would still pay $112,500 at that time. But yeah, I think it’s a good deal and priced fairly given that people buying it now are taking a risk buying it before we open.
The contract is transferable, so if Nectome becomes successful (many patients in the future) you presumably should be able to recover a large fraction of the contract value at that time.
(Obviously if the procedure becomes cheap then you won’t recover as much, but that’s inherent to the “pay far in advance for a discount on current prices” bet, regardless of your provider preferences changing.)