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The defect rate for a lot Of big box stores is something like 1:100000. Which seems really low but when you move millions/year it can be volumes. And once you r
by yardie 7y ago
The defect rate for a lot
Of big box stores is something like 1:100000. Which seems really low but when you move millions/year it can be volumes. And once you reach a threshold they can cancel and even clawback money.
- robocat 7y ago1:100000? That's a nonsense number because as a consumer we care about failures. A single purchase of a lemon good, and the observed failure rate for an individual consumer will be far far less. I haven't purchased 100000 items, and I have observed multiple failures in goods. Also as a consumer, I would never notice the difference between 1:1000 and 1:100000000 (non-safety related small goods).
- Scoundreller 7y agoIt might be based on dollars. HD probably doesn’t have anyone returning their garden soil or electric wire because it didn’t work, but will have more returns on electromechanical appliances.
- yardie 7y agoI’m just remembering what I heard from a documentary about Walmart. A company, like Rubbermaid, had a contract with Walmart to build millions of widgets. But they wanted it at a certain lower price and it had to meet contractual requirements. Someone in management was lamenting how the defect rate was too low and they might not make revenue. In the end it worked out, they bought new machines with better tolerances. Until Walmart came back and asked for an even lower price...