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Don’t Buy It!
March 10, 2010 by
at 04:19 PM
A commenter to "Indications of Discontent" asserted that "money equals quality" - in other words, you get what you pay for. But this is not the case at all. There are many reasons for disconnects between price and quality, even in a free market economy.
- It can be a question of timing. As an example, the person beside you in the plane may well have paid much less than you for his seat, depending on when he bought it.
- It can be a question of commercialism versus art. As an example, a classic book like War and Peace can be purchased for the same price as a Harlequin romance novel. In fact, the Dover reprints of classic works of literature sell for under $5.00!
- It can be a question of mis-functioning markets. As an example, Hyundai vehicles are beating GM and Chrysler cars in terms of quality ratings, but they cost considerably less.
- It can be a question of competition. As an example, The Hurt Locker won the best movie Oscar at the Academy Awards, despite costing only about $11 million - versus its main competitor, Avatar, which cost more than $200. And of course you can go to the cinema and see either movie for the same price.
Anyone who thinks that a high price tag guarantees high quality is a retailer's dream customer.