• 0 Posts
  • 60 Comments
Joined 1 year ago
cake
Cake day: September 22nd, 2023

help-circle


  • 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.



  • Lemonparty@lemm.eetomemes@lemmy.worldCorporate Greed
    link
    fedilink
    arrow-up
    47
    arrow-down
    1
    ·
    2 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.






  • Lemonparty@lemm.eetomemes@lemmy.worldGo Your Own Way
    link
    fedilink
    arrow-up
    20
    arrow-down
    1
    ·
    edit-2
    5 months ago

    Not according to Randy, they didn’t.

    Generally, it’s not about any one person in particular. It’s about people in the music industry whose egos become needlessly inflated and they show it. It’s a general song. It’s applicable to anyone in their life.

    • Randy Blythe to metal hammer after the Grammy nomination