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The "Breakage" Business Model

CaseInterview.com

Today, I want to introduce you to a concept called “breakage.”. Before I explain the concept, I want you to think of how most businesses operate. This is how most businesses work. The “breakagebusiness model works the exact opposite way. Let's look at the business of gift cards. This is breakage.

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Gift cards, serial numbers and hard technology

Seth Godin Blog

That’s generally a bad idea, since there’s so much waste and breakage, but it was the right answer to the problem in the moment. Disabled people or folks who are out of the mean in any way are shunted aside by what the busy but blindered tech people think is important. I bought someone a digital gift card the other day.

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On demand vs. in stock

Seth Godin Blog

Most of the cost of everything we buy is in the risk, the starting, the stopping, the waste, the breakage, the planning. If you're organized to be in the mass customization business, then the wind of custom everything is at your back. Freelance work, shoes, baked goods, kitchen cabinets, software, travel plans. The thing is, it's not.

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Blockchain Will Transform Customer Loyalty Programs

Harvard Business

While estimates vary widely, we estimate that the typical “breakage” rate (meaning the share of points not redeemed) is about 10%–20%. Business in the Era of Blockchain. Plus, it can be difficult for the average person to accumulate enough points to earn a meaningful reward. Insight Center. Sponsored by Accenture.

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