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Author Topic: How good are we at working out what is a real bargain?  (Read 1095 times)

Offline thedoc

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How good are we are detecting what really constitutes a bargain?
Read a transcript of the interview by clicking here
or Listen to it now or [download as MP3]
« Last Edit: 24/12/2013 21:30:09 by _system »


 

Offline CliffordK

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Re: How good are we at working out what is a real bargain?
« Reply #1 on: 25/12/2013 10:11:47 »
Interesting story.

In the USA, grocery stores are mandated to post price per packaged item, as well as price by weight or standard unit.  Unfortunately, since the USA never went metric, sometimes the store will post price per pound, and other times price per ounce, often on competing items, so I often find myself multiplying in my head to try to figure out how much something really is. 

I do like to buy in bulk, and it is not uncommon to discover the "bulk" item is more expensive per ounce than the smaller item.  Then I have to decide whether I want the smaller, cheaper item, or the bulk container.

Of course there are the SALE Items. 

I do get drawn towards the sales a bit, although I'd rather have a store that just had the lowest prices for everything, especially since I don't want most of what is on sale.  Of course, I also hate paying full retail with huge markups.
 

Offline chris

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Re: How good are we at working out what is a real bargain?
« Reply #2 on: 29/12/2013 16:42:40 »
The really insidious one, which Paul mentions in the piece, is the legend saying "SPECIAL OFFER", which can actually be offering you a worse deal, but we attribute the positive to it, assuming (sometimes wrongly) that because it's "special" it must presumably also be more cost effective...

 

Offline CliffordK

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Re: How good are we at working out what is a real bargain?
« Reply #3 on: 31/12/2013 21:06:40 »
I suppose there are many components to a "good deal"

Part of the calculation that one might make is whether the charges seem both fair and reasonable.

Consider Bob and Sally sitting next to each other on the flight from Los Angeles to London.
If Bob paid $1000 for his ticket.
And Sally paid $500 for her ticket.
It is quite possible that both of them got excellent deals on their tickets.  However, when Bob finds out that Sally had paid half as much for her ticket, he will feel that he got a rotten deal.

If prices change significantly, either positively or negatively, then it will affect how one interprets the deal.

Quality is hard to judge.  Compare inexpensive low quality items vs expensive high quality items.  And, the low quality item may appear to be a better deal when in fact the high quality items are the better deal. 

This may also put pressure on the quality items to lower both price and quality, while the low quality items may increase the price, but not the quality.
 

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Re: How good are we at working out what is a real bargain?
« Reply #3 on: 31/12/2013 21:06:40 »

 

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