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Equipment too expensive? Wait a few years and pay double instead.
Smiling golf ball technician
Image is representative only and does not depict the actual subjects of the story.
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via Dusan Petkovic
Golf ball technician happily sitting in a factory
Representative only.
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Management heard the price and froze. Twenty-two thousand per mold. Half a million total. Too much. So they tried everything except the obvious solution. So unsurprisingly, the problem didn’t go away. It got worse.
Finally, they agreed to buy new molds. The technician watched them get the new quote. Trade wars had done their work. Molds were no longer twenty-two thousand. Now forty-five thousand. The half-million fix became nearly a million. The entire production budget for two years, drained.
For corporations, “Growth” is like oxygen, this is just how the economy works. And that’s why corporations love the word “scale” so much, just take a look at LinkedIn bios, and you'll see that “at scale” is more common than any job title. And this company is what cheap looks like at scale.
It’s not saving money. It’s borrowing it from the future at terrible interest rates.
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They looked at half a million dollars to fix their molds and acted like someone asked them to buy a small island. So they did everything except the one thing that would have worked. Tinkered. Adjusted. Rotated. Limited. All while the machines kept making bad product and the losses kept stacking. It’s like refusing to replace your brakes because they are expensive, then slamming into a wall and acting shocked that the repair bill is higher.
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Here is the thing about being cheap in a place that makes physical stuff. Stuff doesn’t care about your budget or your decision-making process. You can hold a meeting about it. You can make a spreadsheet. You can form a committee. The machine will still be broken when you walk out. And the longer you wait, the worse it gets. Prices go up. In this case, Tariffs kick in.
The thing you could have bought for 22K is now 45K. And the cost difference is the result of you thinking you are smarter than reality.
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The technician saw it. The technician called it. They ignored him. Then they paid double and fired people.
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Penny-wise, pound-foolish does not begin to cover it. This is penny-wise, millions-foolish. And that’s what I call “At Scale.”
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