This happens any time your only differentiator is price. The small guy is never going to be able to compete with a larger company on only price. Never make your differentiator "we're cheaper"! It's business 101.
Yes and yes, the conditions aren't great. I've heard video games is even worse (esp. EA).
Edited: [long paragraph about vfx but the reddit link covers it exactly]
I came across the same model when working with an architecture firm and it makes me wonder if maybe all client services, given the power disparity and need to please, isn't like this. Architecture is far more regulated of course but in the design stages I heard from people that were pissed that they were going to take a bath on a project (and look bad and have their numbers look bad) because an executive wanted to make sure that client was happy (such that they cut a mansion renovation down by 50%) or won't do an add service after a client completely throws stuff out the window and changes the scope of a project.
At least in VFX there was OT and DT. I felt bad for architects that were highly educated, with subsequent loans, and working a lot of overtime but not being compensated for it.
I'll stick with IT, even though that has its own issues.
It sucks that this may be happening in farming, which isn't a 'sexy' industry like architecture or film, but our greater society as a whole seems more cutthroat and bargain-driven these days.
I was always under the impression their differentiator is speed, convenience, and selection. They're marketing is heavily towards how quickly and how conveniently they can get anything you want to you.
Either way, that's exactly my point. Why would you compete with Amazon on price? They can get anything in larger bulk quantities than you ever could.
I do a substantial amount of personal shopping on Amazon -- 6-7 orders a month -- and they are rarely the cheapest option. Shipping & hassle-free returns is the value-add.
