Last class we talked about the design of a good or service. It was after the activity with the paint can that I realized how much little changes can make such a difference.
When everyone listed the problems they had using a paint can to paint, professor Cook always gave a solution for it. Such solutions implied getting other products just to fix the struggles of using a paint can. If someone would have decided to accept those solutions then the cost of the paint would have increased because to paint not only you would need the paint, but now all those other products to make your paint can friendlier to use.
Later, she showed us an alternate container with improvement that solved the previous struggles we mentioned, some people asked how much more would that improved paint container cost. And most said that would probably not buy that container because of its higher price.
This activity made me think about those times when you use a product that you need, but you are not particularly happy with. Then an improved version or a competition comes with a better alternative, but of course at a higher price; and you are reluctant to adopt the new or improved version of the product just for its higher costs without really thinking how much money may be wasting by using a product you are not happy with. For example, in a classmate’s post about Apple, I read how most people would buy other laptops rather than Apple ones because they think Apple is very expensive. However, they do not realize the money they have to spend in anti-virus software every year or couple of years. Such cost may match or even exceed an Apple’s Mac cost.
Have you been in a situation where you chose the cheaper product and ended up costing you more than you would have expected?
I wonder why people have the impression that Apple products are so expensive? I agree with you when you say that people don’t realize how much they have to spend on products from Apple’s competitors. To answer your question, yes, I have ended up purchasing something cheaper and it ended up costing me more. I used to be a Windows guy. After high school I went through a computer about every year. When my computer became infected with viruses and anti-virus software wouldn’t work, I had to buy a new one. So I ended up buying a Macbook. I’ve purchased two Macs in the last 6 years and the only reason I bought the second one is because my cat knocked over water on it and broke it. However, my current computer has lasted me 3 times as longer. It cost me twice as much as a mid-grade Windows laptop.
Some people believe an apple is expensive simply because it’s an apple. However, I believe an apple does save you time and money in the long run. My mom will not get rid of her windows PC. She has taken it to the Geek Squad who knows how many times. The amount of money she has spent on spy-ware is probably more than the computer itself. I guess some people would rather spend less money and take the risk, than paying more up front for what appears to be the same thing.
I’ve wasted tons of money on things like shoes that only last about a year because I was too cheap to buy a higher quality from the beginning. I’m really frugal when it comes to a lot of things, but I’ve learned that it’s more worth my while to pay more right away for a “better” product than to waste money on countless replacements. On the other hand, I think sometimes products or services are more expensive just because of the name brand, so it’s difficult to differentiate quality from hype.
I can relate to this because I am a windows guy. Apple computers are too expensive and I have never bought an apple computer. Most windows Pc’s are worth the cheaper price unless someone buys an Compaq, Acer, gateway,Dell, or simply does not take care of it. On the other hand, I have heard many good things about macbooks, but have never been convinced to pay up for one.
Over the summer, I ran an exterior painting company and had to buy tape in order to make clean lines. At Sherwin Williams they offer a couple different types of tape. Trying to save money I bought the least expensive tape which ended up being masking tape. In the mornings, my painters would tape off the areas and then take it down before they would leave in the evening. Throughout the day, the temperature would reach to 90 degrees. It being so hot, the tape ended melting to the house. By buying cheap tape I thought it would save me money but in the end it cost me more as I had to pay my painters to stay longer and scrape the tape off the house.
I agree that spending a little more for a certain product will save us more time and money in the long run. I don’t remember a situation where I’ve purchased a cheaper product that cost me more later, but I wouldn’t say that it hasn’t happened to me. When buying a product I usually try to do my research beforehand to compare the quality and price that I know which product is worth buying.
I have chosen a product over another because of its lesser price tag. I bought a specific electric shaver over another but even though I spent less at the time of purchase I found myself purchasing another a few months later because it went bad. Learning lesson here is that sometimes you get what you pay. Cheaper is not always the best route to take. Ultimately its about how satisfied you are with a product. When satisfaction is reached then the price you paid becomes less relevant to you. A companies product decision is to implement a product strategy that will give it a competitive advantage. Consequently, a higher product cost raises a products selling price. So even though price is a factor when buying a product, quality and satisfaction supersede it.
I feel that everyone wants to find a bargain and save money. Usually you think you are getting a bargain and when the product fails you, in the you are going to spend more. Like the last comment says, “you get what you pay for” which is completely true. I can’t personally recall a time when I had to make a choice of whether or not I should buy the cheaper or more expensive product.
You raise a good point Carla, there is more than one ‘cost’ associated with a purchase. We naturally assume that the cost of a product is its price, but there are other expenses as well. (i.e. time, learning curve, etc.) I use some sort of cost/benefit analysis with all my purchases, and I think we all should weigh our purchases perceived benefits relative to their costs. In our spaghetti tower exercise we had to maintain an effective budget, and quickly determine whether a marshmallow’s cost was worth its perceived benefit to the structure. There was a happy medium between cost, performance, and time; as there is in almost every purchase.
I have came across this issue many times. I always tend to go with the cheaper option leaving me very unsatisfied. A lot of people have the habit of doing this because they do not see things in the long run. Taking your laptop example, we think we are only spending about $500 on this laptop right now, but do not take the time to think how much more we are going to have to spend on it in the future and also how long its going to last. Possibly buying that Apple laptop would be much cheaper in the long run.
I have always tried to save a buck or two by buying the least expensive brand. But it has taken me quite sometime that that doesn’t necessarily is the best way to do things. Nowadays, its all about quality for me. I recently purchased and Apple laptop and it has been the best investment for me. In the past, i always stuck to PC’s. The laptops that I owned would begin giving me issues within 6 months and break down after a year. So I decided to try something new. Since i have purchased this Mac, it has been nothing but good to me. I spent a little extra money for it, but it has been well worth it. I have had no major problems with it and realize that I can get more accomplished without the worry of it shutting down and losing all my data. I now know that for me, I am willing to spend the extra dollar if its going to make my life easier.
I can only speak for myself, but when I considered the marginal cost of the two paint cans and the struggle and strife that one causes, it was a clear choice to me to spend the extra dollar. I consider myself a savvy shopper, and that means that I do not just blindly consider price, I consider value. For each marginal unit of my money that I am willing to pay, I expect corresponding unit of return, and I am self-conscious enough to realize all the vastly different places that return can come from. For example, the prices Apple charges are preposterous and nowhere near worth the processing capabilities their computers offer, which is what I look for from my P.C.’s. (and the numbers on viruses current and projected that will infect Mac’s is far higher than people think), but they are pretty, and valuable in creative areas which I don’t use. The point is that what you will pay all depends on what you want. I think that product innovations will eventually catch on if they’re good, but they need time. If I were a first time painter, I would probably not pay the extra money for the better can, but knowing the alternative and the annoyances it causes, I would. After the educated consumers catch on, the general public will follow.
I have always been a believer of “You get what you pay for”, especially when it comes to shoes. Just last month, I was shopping for a pair of dress shoes to compliment my new year eve dress. I was having a hard time finding the right shoes to match the dress and ended up having to buy something different (synthetic) than what I normally would have. When it comes to shoes I’m all about comfort and usually will only buy shoes that are leather and do not hurt my feet. I ended up buying a pair of (patent leather = synthetic, 4 inch heals) and boy did I pay the price for it! I paid the price not because the heals were 4 inches, but because they were synthetic and they did not give as most of my shoes have in the past. The next day was brutal, my toes hurt so bad that I could hardly stand to walk on them. I had to go to the store, buy Espsom salt and soak my feet for a couple of hours, hence costing me time and money.
I think you did a good good of displaying the tradeoff between cost and quality. I have had a situation where the cheapest product turned out poorly. It was when I bought my first laptop for $300 and it broke after 6 months. After that, I never mind paying a little more for products.
I think almost all of us been in this situation including myself and at the end when product doesn’t work for me I usually put it in the basement until it’s time to do the next salvation army run. I used to think that yea its only a dollar why not buy it well at the end I usually have to send twice as much to drive to the store, waist the fuel and time and pay more for better quality product. That’s why couponing is a great way to still get that better quality product but with the reasonable price. It is also why many companies now a day’s really listen to their customers about the quality of the product you need they also send you coupons to make you even happier.
I think you identified two issues in your post. The first relates to basic economics. Buying a more expensive product for the convenience it provides versus the alternative depends on the percieved benefit from the person buying it and it varies from person to person and income to income. The second issue is the real cost behind supposed “bargain buys”. I know all too well the real cost of buying cheap products, but regardless how many times I fall prey to the illusion of great buy I always seem to convince myself that paying less is a better deal. I think it really comes down to “Do I want to pay now or pay later?”.
Maybe I’m just not a good consumer, but I always assumed Apple products were relatively reasonable, or about the same as competitors. I find that I come across the problem of price/quality frequently when it comes to clothing. There are many times when I go for a cheaper piece of clothing that doesn’t last me nearly as long as a more expensive piece. The cheaper objects tear, fade, or shrink easier and it seems I would have been better off paying more in the beginning because I usually have to replace the product rather quickly.
This situation, where I pay for the initially cheaper product that will lead to a higher expense in the long run, happens to me all the time. As ridiculous as it sounds, I think sometimes I do it out of stubbornness. It upsets me how companies make me spend more money through bulk purchases to ultimately save money. I often refuse to buy more of the product because I think, “no, I won’t need that much. They can’t trick me into spending more money.” This ‘trickery’ of course is nonsense, and I need to remember that next time I buy the smallest selection of Q-tips… I will always need them! And it’s cheaper for the company to sell in larger quantity.
I know exactly what this is like. I purchased a Sony laptop six years ago, and aside from the minor glitches that come along with every electronic device, I have had no problems. Recently I bought a Gateway laptop that was a bit cheaper and I have already lost the same amount as its original cost in repairs. It is true, you get what you pay for.
I agree with your statement that sometimes you spend more money when you choose the cheaper products. In my opinion, the main reason why that the cheaper products have a low price is because their cost is low. Low cost sometimes means the low quality. However, some consumers think the most expensive product is the one has the highest quality. And they spend lots of money on expensive products which may not worth that price.
The idea you present is completely applicable to our everyday lives. A great example is just buying generic products over name brands. Most of the time when we go to Target to stock up with bath tissue, detergent, etc. going with generic usually works out fine. But every once in a while when you buy generic paper towels, you end up using more do clean than what name brand towels would do with one. Buying cheaper products, is a “life lesson” situation where you only really know how a products works once you use it and then you are able to figure out if it really is worth the cost.
Many times we fail to realize that in order to get something cheaper we may be compromise on a huge factor such as the quality that would end up costing us more in the long run. I have had an experience where I purchased a pair of jeans which did not last more than a month however, if I had spent 5 times the amount on an expensive pair, I would have been able to use those for over a year. However, I believe this applies more to technological products for example an Apple computer. My Windows laptop just crashed and I am looking into investing in to an Apple just because of the anti-virus cost I will avoid and the fact that it lasts much longer.