A core assumption is that his client will succeed with this change. Only time will tell. A thousand different outcomes are possible: the downstream client is upset by the reduction in quality and switches vendors; new entrants underbid the market further; firms start to differentiate on quality at a price premium, further eroding low end margins; the money saved on this is invested in new roles for to ensure marketing quality control.
The error is to believe that a given state of the world is static. It never is. Every day, millions of very smart and capable humans apply their minds to figure out how to make money by selling a product or service that satisfies. And everyday, what it takes to satisfy customers changes a little bit.
Posts like this drop all the context that led to such a job even being possible in the first place.