Scale hollows everything out.

· Bits and Bobs 4/14/25
  • Scale hollows everything out.
    • At a small scale you don't think about the nice touches cost, you just do them.
      • The direct cost might be high; the indirect benefit might still make it worthwhile.
    • For example, if you have an individual home you rent on Airbnb, you of course stock the kitchen with the basics.
      • You don't even think about it.
      • It's below the Coasian Floor.
      • Of course you do it!
    • But say that you're a multinational corporation with hundreds of vacation condos you own and rent out.
      • How much does it cost to have vegetable oil in each of a thousand units?
        • At scale, the answer to even a small expense is "quite a lot!"
      • Now it's above the Coasian Floor.
      • You must think about it.
      • The question you ask yourself is: "would not having this make customers noticeably less likely to choose to book again in the future?"
    • The costs are legible; the benefits are illegible, so the cost cutting dominates.
    • Each individual nice touch clearly isn't load bearing on its own, so you cut it from the budget.
    • But together, all of the little touches were load bearing, making the rental feel more soulless, not the kind of a thing the user might want to return to.

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