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It's an awful reality, but there is more money to make when targeting rich people than there is money to make products than benefits normal people. You often s
by jokoon 4y ago
It's an awful reality, but there is more money to make when targeting rich people than there is money to make products than benefits normal people.
You often see this in startups and business plans and models. Same for whale users.
This says a lot about capitalism.
- adam_arthur 4y agoEh, there’s money to be made everywhere. Costco and McDonalds make a lot of money too. Certainly adding arbitrary “upgrades” or higher end models specifically to milk less discerning consumers has proven to be a good business strategy. I could see laws against arbitrary software gates limiting hardware gaining traction though. I’d like to hope that the manufacturers who don’t use these tactics win out naturally though
- stu2010 4y agoEconomies of scale mean that it's frequently less expensive to manufacture only the top configuration with the most features, and then turn features off in software. Broadly, I think that price discrimination is good because it allows the cheaper version of things to exist and be sold at a lower profit margin than a company would otherwise be willing to sell for. For example, the 2022 Ford Maverick XL was not available with cruise control, but it's only locked out in software. All cars have computer controlled throttles now, so cruise control is a software-only feature with no additional hardware. Some other hardware that's commonly limited by software is CPUs, GPUs, and such. I had a triple core AMD CPU that I unlocked into a quad core, and an ATI GPU that I reflashed into a higher model. This has become less possible as manufacturers start using lasers to destroy parts of their own product instead, so that hackers can't re-enable disabled functionality. If laws came around to prevent software from being used to limit hardware functionality, that's what we're going to start seeing: more money and effort spent to intentionally remove or destroy things from products. That sucks compared to just switching it off in software.
- robertlagrant 4y agoYes it does, but not in support of your thesis. Angry Birds made a fortune by targeting every phone user for 79p. Apple far more so by putting a phone in millions of pockets. Amazon makes money based on lots of small transactions by non-rich people. Bugatti makes money by targeting a few rich people. You can go big, but have a few customers, or go small and have loads. This is why we have any products to buy - you can do well selling to all sorts of income levels. You just need the right product at the right price.
- ksidudwbw 4y agoMore FOMO to milk whales doesn't bother me at all.