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From the customer's POV, selling dollar bills for fifty cents each is also a high-quality product.

No not really. Again, they lose billions right now because it costs a lot to build out new buildings. Then as a building matures they recoup these costs through the memberships. The more mature offices are profitable. It just isn’t necessarily tech/VC level profits.

They aren't building out anything, they lease existing office space.

MoviePass was an amazing product from the customer POV. Not a viable business though.

They rent office space.

If you think office space doesn't vary in quality, you haven't worked in a very wide range of companies :)

Or rented from Regus, which is a company that people are just now finding out about. Their offices are absolutely embarrassing.