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"Extort customers" is another way of saying "perform price segmentation". Customers hate it, especially when coupled with economies of scale that make building
by LeifCarrotson 4y ago
"Extort customers" is another way of saying "perform price segmentation". Customers hate it, especially when coupled with economies of scale that make building one physical thing and selling two software-separated different things, but it's perfectly rational if abhorrent capitalism.
As I quoted literally yesterday regarding the BMW heated seat subscription [1]:
> And God help you if an A-list blogger finds out that your premium printer is identical to the cheap printer, with the speed inhibitor turned off. [2]
You wrote:
> Essentially, every P90 should be $4500 cheaper and every P60 should have the range of a P90.
This is not realistic, or is at least overly simplified. There are customers who would not buy the product at the P90 price, but still will give Tesla money - just a little less. Tesla wants that money. There are also customers who are willing to spend a lot more than the list price of a P60, and Tesla wants that money too. Tesla also doesn't want to build and stock two different sized battery packs.
How would you propose that this should work? Regulate price segmentation? Better information for consumers? Moral pleading for megacorporations to act against their financial interests?
[1] https://news.ycombinator.com/item?id=32225588 https://news.ycombinator.com/item?id=32225588
[2] https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-duckies/ https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-...
- mlyle 4y ago> but it's perfectly rational Indeed, price discrimination eliminates deadweight losses and improves economic efficiency.