This is getting HUGE exposure on Xwitter right now.
YC is backtracking on them and rightly so. I don't blame them, they probably pitched something relatively ok-ish; today's demo is just a disaster from every angle.
Incidentally, this also shows why 2020s YC is a different beast than 2010s YC, they don't really care about your startup, they don't even really know what is it about, its just a pure numbers game at this point.
Methaphorically, YC also optifye-d itself into what it is nowadays.
Successful shorting seems to be damn near impossible in this economy. It's just too irrationally optimistic. Maybe this is changing under Trump, but most of the famous short sellers (James Chanos, Hindenburg Research) have closed shop
The founders merely translated existing practices into a piece of software. While the demo was a little off, the pain point is pretty valid.
As a manufacturer,I have seen factories loose contracts over 20 cents, while the same goods is retailed 4X-5X margin at $85. At the end of the day factories rarely make margins on COG (Cost of Goods), but survive on the residues of efficiency. Even though volume is the game, brutal efficiency is the rule.
I personally feel it’s a misplaced backlash on the founders or the factories, while the main enablers are the Big retailers. Factories are at the mercy of big retailers, their relationship dynamic akin to mob boss-henchman, where the factories simply follow the orders.
Most factories practice two modes of compensation:
1. Per pc rate - Payment is directly tied to the output, more efficient. Requires skilled workers and can sometimes be a little costlier and impractical. Defects are deducted from the workers pay.
2. Monthly salary - This setup can accommodate semi skilled workers since each worker only handles one part of the whole. It’s a relatively cheaper process. However inefficiencies can easily creep in, defects can pile up which can wipe off the whole margin and ruin the factory.
I don’t believe in running a sweatshop, but even well run humane factories have to battle inefficiencies all the time. The line between marginal point inefficiencies can mean canceled contracts, cancelled goods and financial losses.
At the end of the day it’s the workers who have to take the brunt. The upside of efficiency is timely wages; the downside is already obvious.
The upside of inefficiency is a little break for workers; the downside is job loss and unpaid wages.
Hence I am not a fan of mass production esp under contract from Big retailers.
In the context of the current topic, follow the orders means meeting deadlines and maintaining cost. Big retail weld massive power over manufacturers, consumers over big retail, the desire for faster and cheaper goods over consumers. It’s a loop where the blame shifts as per the convenience.
As a manufacturer, I have also seen some factories passing on the opportunity to contract for some really big retailers, since taking on their orders meant squeezing their workers.
At the end of the day, it’s all about efficiency.But running efficiently shouldn’t come at the cost of low paid workers.
That's kind of outrageous, like the common trope of comparing workers to "slaves." Lot of privilege on display here.
There are still a few Holocaust survivors left. Go ask some of them how their experience compares to that of factory workers who can, ultimately, walk out the door anytime they want.
> It’s a misplaced backlash on the founders or the factories, while the main enablers are the Big retailers. Factories are at the mercy of big retailers.
Everyone always think the fault lies somewhere else. Go ask big retailers and they will say they are the mercy of competition and consumers' demands.
Ultimately, everyone is trying to extract the maximum profit they can, and that includes factories.
Yes that’s totally true. I have seen huge orders being cancelled at last min due to few days delay. Factories loose contracts over minor issues.
The whole mass production phenomenon is very unhealthy esp in fashion where trends changes every week; the pressure to churn the production on time is even greater than other industries.
Not every factories are sweatshops; even good humane factories are under tremendous pressure to run efficiently. Running a business efficiently isn’t a crime.
However I do agree that the demo could have been a little more better.
Why not frame things from the perspective of rewarding good performance? I am sure this will get bought by companies looking to squeeze their workers…and I will not be surprised if this leads to worse outcomes for staff and employers in the medium to long term.
Because that's not the impetus for creating it and they're not clever enough to hide it. They made it because they want to punish what they believe is the laziness of people beneath them.
Readit News
YC is backtracking on them and rightly so. I don't blame them, they probably pitched something relatively ok-ish; today's demo is just a disaster from every angle.
Incidentally, this also shows why 2020s YC is a different beast than 2010s YC, they don't really care about your startup, they don't even really know what is it about, its just a pure numbers game at this point.
Methaphorically, YC also optifye-d itself into what it is nowadays.
It is not. Lots of exposure. Those who complain were not customers. Those who are potential customers don't care about comments on twitter.
Can argue backlash hurts YC but for the company itself probably helps in long run.
1) Someone actually thought this was a good idea
2) Someone actually built it
3) YC actually funded it
5) Someone actually made the video
6) Someone actually shared it with YC
7) YC thought it was a good idea to post it
This went through too many layers
Legitimately feel like just crashing out of this industry and taking up farming or something
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Most factories practice two modes of compensation: 1. Per pc rate - Payment is directly tied to the output, more efficient. Requires skilled workers and can sometimes be a little costlier and impractical. Defects are deducted from the workers pay.
2. Monthly salary - This setup can accommodate semi skilled workers since each worker only handles one part of the whole. It’s a relatively cheaper process. However inefficiencies can easily creep in, defects can pile up which can wipe off the whole margin and ruin the factory.
I don’t believe in running a sweatshop, but even well run humane factories have to battle inefficiencies all the time. The line between marginal point inefficiencies can mean canceled contracts, cancelled goods and financial losses. At the end of the day it’s the workers who have to take the brunt. The upside of efficiency is timely wages; the downside is already obvious. The upside of inefficiency is a little break for workers; the downside is job loss and unpaid wages.
Hence I am not a fan of mass production esp under contract from Big retailers.
I seem to remember some person using this argument. I think it's called https://en.wikipedia.org/wiki/Superior_orders
At the end of the day, it’s all about efficiency.But running efficiently shouldn’t come at the cost of low paid workers.
There are still a few Holocaust survivors left. Go ask some of them how their experience compares to that of factory workers who can, ultimately, walk out the door anytime they want.
> It’s a misplaced backlash on the founders or the factories, while the main enablers are the Big retailers. Factories are at the mercy of big retailers.
Everyone always think the fault lies somewhere else. Go ask big retailers and they will say they are the mercy of competition and consumers' demands.
Ultimately, everyone is trying to extract the maximum profit they can, and that includes factories.
Not every factories are sweatshops; even good humane factories are under tremendous pressure to run efficiently. Running a business efficiently isn’t a crime. However I do agree that the demo could have been a little more better.
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Day by day things are moving towards dystopia.
This story was even flagged. Like wtf?
The launch video was disgraceful.
Using humans in pipelines irrevocably sets this kind of dynamic up, sadly.
This guy knows marketing. Agreed it would not have been as controversial