In this episode of KP Unpacked, KP and Nick break down one of the toughest choices for hardware and robotics founders in AEC:
Should you sell the equipment, offer it as a service, or self-perform the work?
We cover how to size distribution and reduce friction, when CapEx vs OpEx tilts the deal, what risk transfer really costs, and why your choice is not static. We also get into channel pitfalls like exclusivity and rights of first refusal, and share field lessons from companies building real robots for construction.
What you’ll learn
- A simple way to map distribution size vs friction before you pick a model
- When RaaS wins due to OpEx and risk transfer
- When to sell equipment because the interface is mature and buyers have CapEx
- When to go Prime/self-perform for fast payback and control
- How maintenance, spares, and uptime reshape your margins
- Why channel exclusivity and ROFR can box you in
- How to use customer conversations to validate the model early
Examples referenced
- Lumina: electric construction equipment and why self-perform can align incentives
- Okibo: drywall finishing robots and why RaaS speeds product learning
Timestamps
- 00:00 Intro and warm-up
- 03:05 Why cheerful, constructive podcasts work
- 04:45 Founders Podcast and dense learning
- 07:06 The big question: sell, service, or prime
- 09:20 Framework start: distribution size vs friction
- 14:35 Leasing, risk transfer, and unfamiliar tech
- 17:20 RaaS realities: maintenance, spares, support
- 22:35 Heuristics for RaaS, sell, and prime
- 25:20 Incentives when you operate your own machines
- 28:36 Okibo case: production scale and feedback loops
- 33:26 CapEx vs OpEx and incentive alignment on projects
- 39:44 Channels, exclusivity math, and distribution maturity
- 40:39 The ROFR trap and how it kills deals
- 42:19 Ask customers early and often
- 47:39 Wrap
If you’re building in AEC and wrestling with go-to-market, send us your scenario. We’ll pressure-test it on a future episode.
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