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When there's no competition

Andrew Wang
IQ 420, if I didn't take online IQ tests I'd be perfect

The amount of companies in a market is not indicative of the freedom of choice for consumers.

Shenzhen is regarded as the Electronics Capital of the world, making almost everything imaginable. I had done various projects with my partners in Shenzhen at nice prices. As I began working on this year's product launch, I tacked on IP68 as a requirement.

Suddenly, dozens of factories said they couldn't do such a thing. "Oh no, we can't do that...that's impossible!" "We don't have the engineering capability!"

It eventually came down to a single company who could meet all our specifications. I asked for a quote and it came to a whopping 88000 USD. 

Everything in China is negotioable, right? So I asked if they could compete with another factory (read: a made up price) and match the price.

They said no. When I asked why, they said this:


Translated: We have over 30 hardware and software engineers, we can make anything up to our client's specification. Small companies cannot do this.

Thus, they are able to charge exorbiant amounts of money for this, without ever needing to compete.

So much for the free markets. Doesn't this sound like health insurance?


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