I want you to be right, but I’m more skeptical. I see all over the place companies explicitly targeting a profitable subset: the biggest suckers of the available suckers. Higher margin, fewer whiny customers. Bonus points if it creates a cult-like fanbase (a lot of big brands manage to cultivate this).
Saw a story where a company explicitly had a strategy of “increase prices by 10x, and it may scare off 90% of customers, but the 10% left will be a wonderful gold mine”. Particularly shortages in the tech industry swayed a lot of folks that advocated for high-volume, low-margin to low-volume, high-margin.
So if 20% are ride-or-die for Tesla and Musk, then it might be a decent enough move to double down on those 20%.
I want you to be right, but I’m more skeptical. I see all over the place companies explicitly targeting a profitable subset: the biggest suckers of the available suckers. Higher margin, fewer whiny customers. Bonus points if it creates a cult-like fanbase (a lot of big brands manage to cultivate this).
Saw a story where a company explicitly had a strategy of “increase prices by 10x, and it may scare off 90% of customers, but the 10% left will be a wonderful gold mine”. Particularly shortages in the tech industry swayed a lot of folks that advocated for high-volume, low-margin to low-volume, high-margin.
So if 20% are ride-or-die for Tesla and Musk, then it might be a decent enough move to double down on those 20%.