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If half your potential customers are unwilling to pay for a higher range option but will purchase a lower range model for a reduced price that still nets a prof
by cptskippy 8y ago
If half your potential customers are unwilling to pay for a higher range option but will purchase a lower range model for a reduced price that still nets a profit for the same fixed battery cost, what do you do?
Offer a lower range option.
If the cost of retooling a line to make 2 battery types, or setting up a new line from scratch results in a greater cost per unit, regardless of capacity, than 1 line producing the single high capacity battery then why make two battery types?
Are you saying they should just offer only the higher capacity battery at a lower price or just tell the lower range customers to fuck off with their money?
What if you could satisfy both potential customers and offer the lower range customers the option to upgrade in the future at a cost lower than replacement of the whole battery?
What if you could also offer them a good will gesture of added range if they're fleeing natural disasters?
Is that ransom?
Would you be outraged to discover your printer's print speed was artificially capped to not erode the market for a faster model?
Or that your CPU wasn't running at it's maximum potential?
Does it only become outrageous or random when the manufacturer offers you the option to unlock it's full potential?
What about Labor? If you pay a yard service $50 to clean your property and they do it in 4 hours but your neighbor, with a 2x larger yard pays $75 and they still complete the work in 4 hours. Do you demand a lower rate? Faster service? Both?
The fact of the matter is if you paid for 100kwh battery and they give you a 120kwh battery that will only put out 100kwh are you being cheated or held at ransom? Or are you just getting what you paid for?
Why are you entitled to get anything more than what you agree to buy?
- TheSpiceIsLife 8y agoI upvoted this comment, just so you know. You've made some good points, food for thought for me.
- acct1771 8y agoI agree with his points - logically. That doesn't make me less upset that my chip has wasted potential artificially locked away. Sometimes, how you treat your customers doesn't have to be unfair for it to make a negative impact on customer vibe/relations.
- cptskippy 8y agoI don't understand how their customers were mistreated. Tesla produced two identical cars that cost exactly the same to manufacture. They offered one at a cheaper price but with a restriction on the battery capacity. They sacrificed their product margin to offer customers a vehicle they wanted or could afford. They also said "hey if you want the additional capacity you can pay the difference to unlock it."
- ddingus 8y agoI upvoted you. And them. Good, solid discussion. Nice to see.