Discount Diving
I will give the disclaimer that some of you may think that a blog about the recent Titan catastrophe is in poor taste: after all, the idea of using the story of how five wealthy tourists died after paying a quarter million dollars each to visit the Titanic wreck two and a half miles below the surface as a metaphor for the relationship between price and value could be considered a tough (but fair!) take.
A development I found out about it while after I landed in in Boston last weekend. I was tipped off something may be afoot when there were a million camera and news crews on the seaport and I couldn't figure out why. A quick Google search told me they were leading the rescue mission for this submarine that had been on a mission to view the Titanic wreckage. If you haven’t read much about this story below is a link that gives the timeline.
https://nypost.com/2023/06/22/the-missing-titanic-submersibles-tragic-journey-timeline/
All due respect to those who passed, I am still going to use this news as a jumping off point for what I expect to be a funny yet insightful blog, so please bear with me.
For those who don’t know, I’m a big space/aviation nerd. So I get people taking trips into space with Bezos or even that clown Elon. And my stated life goal is to make enough money to fly in a fighter jet before I'm 40.
So I get the adrenaline junky mindset but I mean, c’mon. This:
Ain’t it.
Besides, you basically can’t see the wreck because it’s so dark, you have to watch it through a video screen. Which means that if you watch this video:
Hold an old Xbox controller, shove yourself into your dryer, and turn the lights out, you got basically the same experience at no cost and no risk. Your spouse may have some questions, but remind them its been your dream and you’re not a billionaire yet.
The point I am making here is that there is a difference between price and value.
It is fair that the people in this submarine valued the experience so much that they were willing to not only risk their lives but pay $250,000 for the privilege to do so. They did so in the hopes of viewing what is one of the most interesting human-made creations/disasters of all time, 2.5 miles below the sea.
But the issue (aside from them not making it back) is that they wrongly assumed that price = value. And this is not something that is limited to billionaires. American consumers have to weigh this every single day: is it cheap cuz it sucks? Or is this actually a good deal?
Does that brand’s quality demand a premium? Or am I getting ripped off?
This is the exact reason Costco’s Kirkland Signature brand exists. So you can sleep well knowing you got a good price AND a good value.
Again my problem comes not with the interest and courage to explore but the risk/reward calculations.
Sure the price of $250k seems like a crazy amount, but people have also paid $30 Million to be launched into space riding Bezos’ dick rocket.
The key difference, however, is that Bezos paid scientistists, engineers, and NASA hundreds of millions, if not billions of dollars to research his dick rocket BEFORE it was launched into space to make sure it was strong enough to penetrate Earth’s atmosphere and survive coming back.
By comparison, OceanGate, the company responsible for this clusterf*ck, was warned, repeatedly, their submersible was unsafe. While you can read the whole thing yourself, here’s the nub of it:
Shot:
The 2018 letter from a professional trade group, the Marine Technology Society, flagged the company's marketing materials which advertised that the Titan's design would meet or exceed a certification called DNV-GL. Stemming from the independent Norwegian foundation Det Norske Veritas, or DNV, the certification is considered the gold standard for marine equipment.
Chaser:
Lochridge wrote that he learned the viewport on the sub was only built to a certified pressure of 1,300 meters, even though the Titan intended to go down to 4,000 meters in depth. He also urged OceanGate to use an agency such as the American Bureau of Shipping to inspect and certify the Titan.
It sure seems like 5 people died because off-brand J Peterman cut corners to save a buck, then lied about it. And, because we live in the stupidest timeline, this exchange between a Congressman and a 2024 Presidential candidate happened:
What’s the Upside?
Paying a lot does not necessarily mean you are getting a better product. Especially in the investing world. And while it won’t cost you your life, it could cost you your retirement.
https://www.cnbc.com/2023/03/01/mutual-fund-red-flags.html
Remember there are a million free to low cost options to invest. If you need help navigating that, reach out in the comment section.
And always remember from crypto schemes to janky submersibles, if it sounds too good to be true. It likely is.