Form 1: Cheap product, cheap prices
When I was growing up my mother used to buy washers and dryers from the used appliance place in the next town over. No problem. keeps materials in use longer. better for the environment. helps small businesses, and all that good stuff. However, every year, almost like clockwork, one, or both, would breakdown. This, of course, would require the purchase of yet another unit(s). She'd buy a unit, a year would go by, and she'd purchase another unit.All of this was no problem (except, of course, for those of us who had to help move the units in and out) because it was furthering the use of already captured materials, and she wasn't paying that much for the units.
It was this example that first opened my eyes to these different models. One day, when my brother and I were moving a washer out, he -- frustratingly -- asked our mother, "Instead of paying $150 every year for a unit that's only going to last a year, why not pay $1,000 for a high quality unit that -- among other things -- will last, and has a warranty, for at least ten years?"She was a single working mother of three, and her response was something along the lines of, "Because I can't afford to pay that much at one time." A perfectly understandable and all too common situation which is what makes this model acceptable.
Form 2: High quality product, expensive prices
Most likely due to my upbringing, I primarily adopted the purchasing mentality of form 2. You do a little research, save up the appropriate amount of money, and you buy a high quality product. That product will perform better, last longer, and give you greater piece of mind.
When you go to a shoemaker's shop -- which are typically also cobblers (those who repair shoes) -- and look around, your eyes will pop out of your head at the thought of paying $400 to $600 for a pair of shoes. However, when you buy a high quality product and take care of it, it will last you many years if not decades.
This would be the ideal way everyone would probably desire to shop if they could afford it. There would be far less consumption of raw materials, and consumers would be far happier with their products.
At any rate, whether one chooses form 1 or form 2, these are both perfectly fair producer / consumer relationships.
Form 3: Cheap products at expensive prices
The problem is producers. Why be satisfied selling someone something once every 10 to 15 years, when you can sell it to them every year -- or multiple times a year. And, if producers were willing to stick to the criteria of form 1, that wouldn't be so bad.
However, what we, as consumers, have been feeling the greater and greater economic squeeze of lately is this bastard form 3. Don't get me wrong; it's not new, but neither is murder. The fact that something has been around for a long time does not make it acceptable.
Form 3 seems to have become the new status quo. We are now continuously being asked to pay Handmade Italian Prices for Sweatshop Goods. I could go on and on with anecdote after anecdote, but I think, if you've been shopping at all in the last couple years, you know exactly what I'm talking about. And, I don't know about anyone else, but I am tired of paying outrageous prices for crap products.
I'm curious as to what anyone else thinks.
This is mostly a personal contemplation post about everyday purchases, but price and quality are two thing that are very pertinent in both cycling and scuba.
I see this at where I work and it helps me notice it in other companies. We make a variety of levels of product. You'd like to think that more expensive products would have more expensive parts. The problem is, it is way more cost effective in a number of ways to have the same parts in everything and just add more features or enable more features in the expensive model.
ReplyDeleteGary, I believe I know exactly what it is to which you are referring. When I was in lean mfg, it was my job to set up, and optimize existing, production lines. Uniform tools/machinery and related parts are the best for optimal production times -- especially on lines that run multiple BOM's.
DeleteFortunately, I worked for a company that didn't have the choice to skimp on parts and materials. Our customers were masters of reverse engineering and required very sensitive standards.
At any rate, for general consumers who can't afford the luxury of dissecting their purchases and then demanding their producers do better or make changes, what do we do? Absent the hermit/off the grid option, we can't boycott all the companies selling us a bill of goods; we'd starve, get cold, fall out of touch, have sore feet, and so on...
I noticed some interesting things when I worked repairing household appliances in Florida. Most companies owned any number of smaller companies. Now they had their low end models that they would produce and sell under basically every name they owned. The difference being they would increase the price as much as 5-10 times as much depending on which logo they slapped on the front (I'm not exaggerating the amount either). Remember these were the exact same items, made in the same factory, by the same people, with the same parts. I understand paying a but more for trademarks and royalties, but I doubt that cost justifies a price increase on that scale.
ReplyDeleteYeah Matt, I had a friend who worked at a car battery factory; they produced 5 different types of batteries under 7 different brands, and he told me "as long as you're buying a comparable size and type of battery, the only difference is the molded casing or the sticker wrapped around the sides."
DeleteThe world we live in, Ahh...