By making so many failure points, they figured out how to basically make cars subscription models. Only the manufacturer can repair a lot of these failure points.
Also, why sell three $20,000 cars to three people (three warranties to honor, more salespeople's time) when you could just sell one $70,000 car to one person?
Since the pandemic this strategy has happened, and worked, for basically everything.
Fast food was nearly a charity compared to what it is today. Dollar menus that fed 3 people for $10. Overhead reduces if you just convince one bozo to spend $15 for an awful fast food experience instead. And it's doing great for them.
The GPU scalpers of the crypto times showed GPU manufacturers just how much they could make, and GPUs were still insanely expensive after crypto mining basically died. And now we have it with these ram shortages. There is ZERO chance that prices will ever go back to anything remotely close to what they were. It will feel cheap compared to the $2000 ram of today, but that is all just luxury from here on out.
Small homes are no longer produced. At all. You better want a mcmansion, or larger.
Hell, even most theme parks got in on it. $120+ just to get in, then, you better buy three $20+ upgrades!
Every single company realized they would much rather serve/ripoff one person willing to spend too much, than have to deal with multiple satisfied customers.
Because we have no other option anyway, all companies are in on this model.
Every single company realized they would much rather serve/ripoff one person willing to spend too much, than have to deal with multiple satisfied customers.
I think it may be more the case that the average person doesn't have the income necessary to buy new so manufacturers are focusing only on the market segment that can actually afford the product in the first place and the best way to attract them is with shiny bits of creature comfort.
In other words, depressed wages have priced people out of the economy
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u/rolfraikou 7h ago
By making so many failure points, they figured out how to basically make cars subscription models. Only the manufacturer can repair a lot of these failure points.
Also, why sell three $20,000 cars to three people (three warranties to honor, more salespeople's time) when you could just sell one $70,000 car to one person?
Since the pandemic this strategy has happened, and worked, for basically everything.
Fast food was nearly a charity compared to what it is today. Dollar menus that fed 3 people for $10. Overhead reduces if you just convince one bozo to spend $15 for an awful fast food experience instead. And it's doing great for them.
The GPU scalpers of the crypto times showed GPU manufacturers just how much they could make, and GPUs were still insanely expensive after crypto mining basically died. And now we have it with these ram shortages. There is ZERO chance that prices will ever go back to anything remotely close to what they were. It will feel cheap compared to the $2000 ram of today, but that is all just luxury from here on out.
Small homes are no longer produced. At all. You better want a mcmansion, or larger.
Hell, even most theme parks got in on it. $120+ just to get in, then, you better buy three $20+ upgrades!
Every single company realized they would much rather serve/ripoff one person willing to spend too much, than have to deal with multiple satisfied customers.
Because we have no other option anyway, all companies are in on this model.