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Once they reach the limit of demand, then there's nothing more to be made in that price category, so they get more by selling out and lowering quality and price
by carlosjobim 19d ago
Once they reach the limit of demand, then there's nothing more to be made in that price category, so they get more by selling out and lowering quality and price.
We're going through massive global depopulation in the entire industrialized world. There are no new customers coming and sales will naturally trend down because of human extermination. Once everybody has an electric shaver, then you know that the next generation of customers is half the size or less. Unless you can make people grow their beards and hair faster, then there isn't going to be any demand among people who can afford a quality product. You have to start targeting the very poor, and thus lower production costs.
- sfn42 19d agoOr you could just be happy to have a profitable company that makes money consistently. Shavers don't last for ever and new people grow up every day. You could also just launch a new product line that's cheaper without compromising the existing ones. But nooo we need infinite growth which is impossible so let's run the company into the ground for some more growth before our shit decisions catch up to us and stock price plummets.
- joclhcjjjc 19d agoiF yOu ArEnT gRoWiNg YoUrE dYiNg
- carlosjobim 19d agoIf your customer base is declining, your company isn't making money consistently. Revenues and profits will decline accordingly.
- sfn42 19d agoThen you scale back a bit and keep making consistent money, just a bit less. The only way things go completely to shit is when you enshittify your product and nobody wants it any more. Or you could expand to other markets, lots of options that don't require making your products worse.
- carlosjobim 19d agoMarkets outside the industrialized world don't have the purchasing power for quality products from the industrialized world. That's why you have to reduce quality to reduce price if you want to sell consumer goods to them. Or wind down your operations. But who would want to wind down their operations?
- sfn42 18d agoThat's not what I meant by other markets. I meant other products, though you could also make a cheaper version of the same product which I've already mentioned.
- alpaca128 19d agoOr the company is grown in an organic way that leads to lower but stable demand.