Please consider donating to Behind the Black, by giving either a one-time contribution or a regular subscription, as outlined in the tip jar to the right or below. Your support will allow me to continue covering science and culture as I have for the past twenty years, independent and free from any outside influence.
Maxim Zayakov, CEO of BulgariaSat and its affiliate television provider Bulsatcom, told Spacefight Now that SpaceX’s push to reduce the cost of space transportation has yielded tangible results for his country. “People don’t realize that, for small countries and small companies like us, without SpaceX, there was no way we would ever be able to even think about space,” Zayakov said. “With them, it was possible. We got a project. I think, in the future, it’s going to be even more affordable because of reusability.”
This is what I have been saying for more than a decade. You lower the costs, you make it possible for more customers to enter the market. This increase in customer base makes it possible for more launch companies to enter the market in response, and that forces the costs to drop further, which starts the whole cycle again. In the end we not only get a robust launch industry, the human race gets to settle the solar system.
The article also confirms that, at this time, SpaceX is only offering a 10% discount for the use of a reused first stage. They say this is because they wish to recoup their $1 billion investment to develop reusability. While this might be true, the real truth is that SpaceX doesn’t need to provide a larger discount. The discounted price of $55.8 million saves satellite companies another $6.2 million, which isn’t chicken feed, and offers them the cheapest launch price anywhere by far. SpaceX in turn makes more money per launch.
Should another company begin to challenge this launch price I would then expect SpaceX to lower the price further. They have the profit margin to do this.
Note that you can watch today’s Falcon 9 launch of the Bulgarian satellite at 2:10 pm Eastern at SpaceX’s website.