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alvin · 03-08-2010, 07:23 AM

Low quality is a strategy. I would believe lots of things are not high-tech and to achieve much better quality is easy if increasing cost is acceptable. But sell to whom? When it's a strategy, you can expect the quality would not improve any time soon.

At the end of last year, I replaced the handle on my toilet water tank. Home Depot had a few choices, and I picked up the cheapest $4.75 one. The handle had silver color tone, sealed in a plastic package. It turned out the cost of making that handle might be lower than the throwed away plastic wrapper.... used only two months, it's broken -- a tiny metal chip falled out when I tried to figure out what's going on.

So replaced again. If I am forced to pay $4.75 every three months on this, each year's cost on this thing would be $19, and times number of buyers of this thing.... probably millions. I bet the cost of making this was not higher than $1.

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And, well off topic.... to balance the trading deficit, USD vs RMB exchange ratio has to be set around 1:3. At current 1:6.7 ratio, money has to flow out, no choice. That's based on white collar worker's average compensation.

03-08-2010, 07:23 AM	#18
alvin User Join Date: Jul 2007 Location: US Posts: 3,843 Thanks: 132 Thanked 729 Times in 438 Posts	Low quality is a strategy. I would believe lots of things are not high-tech and to achieve much better quality is easy if increasing cost is acceptable. But sell to whom? When it's a strategy, you can expect the quality would not improve any time soon. At the end of last year, I replaced the handle on my toilet water tank. Home Depot had a few choices, and I picked up the cheapest $4.75 one. The handle had silver color tone, sealed in a plastic package. It turned out the cost of making that handle might be lower than the throwed away plastic wrapper.... used only two months, it's broken -- a tiny metal chip falled out when I tried to figure out what's going on. So replaced again. If I am forced to pay $4.75 every three months on this, each year's cost on this thing would be $19, and times number of buyers of this thing.... probably millions. I bet the cost of making this was not higher than $1. ==== And, well off topic.... to balance the trading deficit, USD vs RMB exchange ratio has to be set around 1:3. At current 1:6.7 ratio, money has to flow out, no choice. That's based on white collar worker's average compensation.