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Joined 1 year ago
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Cake day: September 22nd, 2023

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  • That’s true, but that’s not what a drop in the bottom line means in this context. If you reduce quality, you also reduce your cost of production. So you’re right if there’s no change in sales numbers at all, you were spending too much on something you didn’t need, and you made a good adjustment. But more often, these adjustments weigh the drop in sales vs the increase in profit that results from the lower cost. If the expected drop in revenue is offset by the increase in take home, they don’t care and keep it that way. What’s really shitty is that once the revenue trend stabilizes and customers adapt to the new lowered quality, there’s nearly always a price increase.




  • The comments read like a lot of people don’t quite understand the issue…There’s no issue with the actual latching mechanism.

    …“Although the problem is with the hood latch” <— literally from the article. Care to re-read?

    It’s just the sensor for reporting the latching state.

    You skipped over the part where a) the latch is deforming, and as a result of that deformation b) the sensor can’t detect that it’s not closed, and so c) Tesla is pushing an update that lets people know their deformed latch isn’t closed properly.

    But yes, we all misread the article. Not you. Definitely not you.


  • Lemonparty@lemm.eetomemes@lemmy.worldCorporate Greed
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    4 months ago

    Not to be pessimistic, but this is also a somewhat common strategy to test how shitty you can make something. Basically, intentionally make things worse to test the impact on revenue. If profits don’t drop keep it that way. If the bottom line starts going down, slowly increase the quality again until they stabilize. It’s likely that changes were not reversed, they were just improved over the trash they made them for awhile. Chipotle has mastered this process. Raise prices, reduce quality, raise quality slightly but not to previous benchmark, repeat.