4 ms·

Having a two-year liability on the books makes it much harder to get a loan.

by danielheath 4y ago

deely3 4y ago
Thats the point. Do not get loan for some junk, no?
- danielheath 4y ago
  I mean as a company trying to raise finance to expand after selling widgets for a year - banks consider the risk that the first year of sales could be returned, bankrupting the company, and charge far higher rates.
- kortilla 4y ago
  Don’t know if it’s going to be junk until much later.
  - pbhjpbhj 4y ago
    The company manufacturing it should know. It's supposed to force a minimum level of designed longevity - you also get Chinese companies selling on Amazon using random-string company names. They seem to just spin up a new company and kill the liabilities; this continuing to make electronics that go very quickly to landfill.
    - vineyardmike 4y ago
      > The company manufacturing it should know. You should know, but its hard to impossible to know for sure. Apple couldn't even predict antenna-gate, and Samsung couldn't predict their exploding phones. Yes, you should know generally how its engineered and designed, but until someone is holding the device, you can't be certain, the same way that a white-board design of an API doesn't have bugs like the implemented one. Companies build the product, then subject it to tests to simulate wear and usage, but sometimes the tests don't accurately reflect how people actually use it (see antenna-gate) or similar issues.
      - Eisenstein 4y ago
        > Apple couldn't even predict antenna-gate, and Samsung couldn't predict their exploding phones. These are exceptions and of course they couldn't be predicted because if they could they never would have shipped. The problem isn't a once-in-a-product-line huge design failure, the problem is that there is currently a race to the bottom in consumer electronics. When faced with a $25 coffee grinder and a $15 coffee grinder people choose the $15 coffee grinder. However the $15 coffee grinder is made using cheap plastic gearing that the engineers know will fail within a year or two of normal use. This is not that complicated -- engineers aren't stupid and materials science is incredibly mature.
        danielheath 4y ago
        And most of the $25 ones are also crap, because someone figured out folks will buy the more expensive one since "it must be better" & started filling that market with junk.

Having a two-year liability on the books makes it much harder to get a loan.

deely3 4y ago

Thats the point. Do not get loan for some junk, no?

danielheath 4y ago
I mean as a company trying to raise finance to expand after selling widgets for a year - banks consider the risk that the first year of sales could be returned, bankrupting the company, and charge far higher rates.
kortilla 4y ago
Don’t know if it’s going to be junk until much later.
- pbhjpbhj 4y ago
  The company manufacturing it should know. It's supposed to force a minimum level of designed longevity - you also get Chinese companies selling on Amazon using random-string company names. They seem to just spin up a new company and kill the liabilities; this continuing to make electronics that go very quickly to landfill.
  - vineyardmike 4y ago
    > The company manufacturing it should know. You should know, but its hard to impossible to know for sure. Apple couldn't even predict antenna-gate, and Samsung couldn't predict their exploding phones. Yes, you should know generally how its engineered and designed, but until someone is holding the device, you can't be certain, the same way that a white-board design of an API doesn't have bugs like the implemented one. Companies build the product, then subject it to tests to simulate wear and usage, but sometimes the tests don't accurately reflect how people actually use it (see antenna-gate) or similar issues.
    - Eisenstein 4y ago
      > Apple couldn't even predict antenna-gate, and Samsung couldn't predict their exploding phones. These are exceptions and of course they couldn't be predicted because if they could they never would have shipped. The problem isn't a once-in-a-product-line huge design failure, the problem is that there is currently a race to the bottom in consumer electronics. When faced with a $25 coffee grinder and a $15 coffee grinder people choose the $15 coffee grinder. However the $15 coffee grinder is made using cheap plastic gearing that the engineers know will fail within a year or two of normal use. This is not that complicated -- engineers aren't stupid and materials science is incredibly mature.
      - danielheath 4y ago
        And most of the $25 ones are also crap, because someone figured out folks will buy the more expensive one since "it must be better" & started filling that market with junk.