Pay Too Much for everything • Hacker News Board

Re: Pay Too Much for everything

#111

Post by spenczar5 » Thu, Jul 12, 2012, 3:38 PM UTC

KC8ZKF wrote: post #93

lazerwalker wrote: post #89

Earlier quoted context omitted.

The key word there is can . A $300 meal may be the best meal you've ever had, but spending $300 on a meal isn't a guarantee that it will be. Conversely, it's also possible that $30 meal could be the best meal you've ever had. Less likely, sure, but possible. It reminds me of advice I've been given from friends who are really into wine: the difference between a $10 bottle of wine, a $50 bottle of wine, and a $100 bott…

There is at least some evidence that an expensive bottle of wine tastes better because it's expensive. When the cost of the wine is unknown to the taster, the differences disappear.[1] And, when a wine is presented to the taster as expensive it is perceived as better than cheaper wines even when it is the same wine. [2] [1] http://www.wine-economics.org/journal/content/Volume3/number... [2] http://scienceblogs.com/co…

Your first article, at least, comes with a strong caveat: "We ﬁnd that, unless they are experts, individuals who are unaware of the price enjoy more expensive wines slightly less." (emphasis added)

Re: Pay Too Much for everything

#112

Post by fceccon » Thu, Jul 12, 2012, 3:40 PM UTC

freehunter wrote: post #66

itmag wrote: post #36

Earlier quoted context omitted.

Is it just me, or do jeans seem very cheap in America? In Sweden, a pair of regular Levi's jeans might cost you 1000 SEK, which is about $136. The designer jeans might cost 1500+ SEK.

I have a friend in Finland (Hyvinkää) who comes over to America on business trips a few times a year. When he's here, he buys things like jeans, nice shirts, golf equipment etc and has them mailed back home. Even paying the taxes at customs, he says it's cheaper than buying them in Finland. The Wrangler jeans I'm wearing right now (wonderful pair of regular jeans) cost me $20.

> The Wrangler jeans I'm wearing right now (wonderful pair of regular jeans) cost me $20

Wow, in Italy Wrangler costs around €70, some models are over €100. I don't buy them anymore because I noticed they deteriorate faster than other slightly more expensive trousers, but for $20 they are really good!

Re: Pay Too Much for everything

#113

Post by allentucker » Thu, Jul 12, 2012, 3:41 PM UTC

Author here - There are many good points here. The purpose of my article was to give a different perspective from the default "buy whatever is cheapest" method that I believe most people follow. Obviously it would be an error to buy things that that aren't better for more money, but I believe this error is often better than the opposite error, buying twice. A good example: I'm writing this on a 10 year old laptop running 1900x1200. Thanks for the comments and feedback.

Re: Pay Too Much for everything

#114

Post by parka » Thu, Jul 12, 2012, 3:42 PM UTC

The article reminds me of what I learned in a marketing:

Value = Benefits / Cost http://en.wikipedia.org/wiki/Value_%28marketing%29

Marketing comes into play. If not, items for sale would be using cost-based pricing.

A Mac and a PC would both can accomplish the same task. But one is more expensive than another. Being cheaper doesn't necessarily mean it won't last as long.

Tipping is one area that I don't understand about cultures that have them. Generally, I would expect the tip to be included in the price of the food. Why waste my time and have me figure out what amount to tip? Personally, I don't see the perceived value of tipping.

In some way, how much you pay is also determined by how you see yourself, or in some cases want others to see you.

Re: Pay Too Much for everything

#115

Post by schiffern » Thu, Jul 12, 2012, 3:42 PM UTC

denzil_correa wrote: post #106

wccrawford wrote: post #68

A while back, I stopped buying the highest-priced goods and started doing research instead. What I found what the best things weren't the highest-priced. I also found that I could find the best items for me because what I care about isn't necessary what others care about. Using this, I've managed to buy better shoes, toasters, and even a car than I've ever had before, and at less than I would have spent if I hadn't d…

You're actually agreeing with the author without realizing it. Why? Because you decided to buy X because it was valued at a certain price and you could afford it. You didn't buy a "cheap" (in quality) version of the product (since you did your research). Unknowingly you are agreeing with the author. :-)

Except the author is arguing that you should use "expensive" as a heuristic (instead of "cheap"). wccrawford is arguing that quality is orthogonal to price.

Re: Pay Too Much for everything

#116

Post by wahnfrieden » Thu, Jul 12, 2012, 3:45 PM UTC

KC8ZKF wrote: post #93

lazerwalker wrote: post #89

Earlier quoted context omitted.

The key word there is can . A $300 meal may be the best meal you've ever had, but spending $300 on a meal isn't a guarantee that it will be. Conversely, it's also possible that $30 meal could be the best meal you've ever had. Less likely, sure, but possible. It reminds me of advice I've been given from friends who are really into wine: the difference between a $10 bottle of wine, a $50 bottle of wine, and a $100 bott…

There is at least some evidence that an expensive bottle of wine tastes better because it's expensive. When the cost of the wine is unknown to the taster, the differences disappear.[1] And, when a wine is presented to the taster as expensive it is perceived as better than cheaper wines even when it is the same wine. [2] [1] http://www.wine-economics.org/journal/content/Volume3/number... [2] http://scienceblogs.com/co…

That reveals more about the power of expectation and prompting than it does about wine. Any respectable wine or beer taster will do it blind, without knowing the cost or the make or anything. And their results are repeatable - I can't speak for wine, but with beer, there are licenses that you get by taking repeatable tests.

Re: Pay Too Much for everything

#117

Post by ajaimk » Thu, Jul 12, 2012, 3:46 PM UTC

The key part of that is the line about services and tips. Just being a generous tipper gets you better service, and specially if you are a regular at the same restaurant or bar. 20% by default with an occasional bump up to 25% in tip gets you remembered and the servers get to know you.

I've had such a good relationship at some of my regular restaurants to the point where I once had ups deliver a package to the bar for me when I was out of town. Other places, the staff starts comping your drinks. My best one was the manager at a restaurant giving me a blanket 20% discount on anything I buy (I tip at least 25% after they put in that discount).

In the long run, you get better service if you pay for it.

Re: Pay Too Much for everything

#118

Post by Evbn » Thu, Jul 12, 2012, 3:51 PM UTC

freehunter wrote: post #91

roc wrote: post #88

Earlier quoted context omitted.

Cars are a good example of why "built to last" doesn't make universal sense. We don't make trucks like we did 15 years ago, because we know what happens to the human body inside a rigid metal shell during a collision. We know that we can design engines and transmissions that will keep you on the road better, keep you out of more accidents and at least halve your fuel bill. And these gains will trivially outweigh the…

A good point about reliability not being the only factor in buying a car. I drive a Toyota 4Runner, which has a 4-star safety rating. It's from years before pedestrian safety laws, so the pedestrian safety rating is low, but the passenger safety rating is quite good. 20mpg is still hard to get from a V-6 truck engine these days. The only modern safety features I wish I had are hill start assist and traction/stability…

What's in a pedestrian safety rating? Mirror visibility? Cameras hooked up to auto brakes? I have never seen a pedestrian-safe automobile, except maybe a smartcar.

Re: Pay Too Much for everything

#119

Post by Evbn » Thu, Jul 12, 2012, 3:54 PM UTC

latch wrote: post #74

mayneack wrote: post #67

Earlier quoted context omitted.

As a personal anecdote: when I eventually stopped growing taller (~19), I started purchasing clothing and outdoor gear that was a step up from the quality of when I knew that I'd grow out of things. While not universal, I did notice a definite uptick in the durability and comfort of most things. It's obviously possible that this was a placebo effect or maybe I'm nicer to my gear now, but I've certainly been getting m…

The placebo effect appears to be massive, at least where it's been studied (wine, for example). I'm happy to admit that, as a general rule ( cough jaguar cough ), higher prices indicate better quality, I just don't think it translates into better value (again, as a general rule). Sure, highly functional things, like shoes and a bed, probably warrant paying more even though the value isn't proportional. Paying 50% mor…

For many people, taking nice photos is how they stay happy when dragged along expensive unpleasant adventures by friends and family.

Re: Pay Too Much for everything

#120

Post by mathattack » Thu, Jul 12, 2012, 4:17 PM UTC

Great modern defense of penny-wise and pound-foolish.

The challenge is automation and commodification pushes us towards the lowest common denominator. Look at airlines, being forced into price, not quality.