Comment on Hot new model: Guaranteed savings contracts

Hot new model: Guaranteed savings contracts

I’m a sucker for innovative new business models, new ways of organizing the way products and services are produced, marketed and priced. Years ago, I got fascinated with the new way Harnischfeger, a Milwaukee-based maker of earth-moving and extraction equipment, was marketing to the mining industry. Instead of just selling big machinery to miners, Harnischfeger offered something akin to a leasing-and-maintenance arrangement in which the price was set based on the number of tons of coal or iron ore extracted.

 

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