Why am I such a cheapo sometimes?... (1 Viewer)

[MarkHastings]

If that were true, then prices would be cheaper. But what is actually occurring is, the price of the product is marked up so the store can make a profit. That's why some stores sell products for more than others and that's what I am 'supporting' since not all of my money is going for just the exchange of the product.

But as Bryan said, it's all semantics and you know what I'm talking about when I say "Supporting a business". I chose which stores to give my business to....or do I have to say, I chose which stores to conduct my exchanges with. Man, you say that phrase in front of the people I know and you'll get your ass kicked for sounding fruity.

 

[RobertR]

The store isn't guaranteed a profit. It's their responsibility to make sure their costs are less than what people are willing to pay for the goods. You'd be hard pressed to find anyone who walks into a store and says "I'm buying from you instead of your competitor because you make less/more profit than he does". Example: The DVD sales from several years ago, where DVDs were selling for 1 or 2 bucks. Show me anyone who refused to buy because the seller was taking a loss.

 

[Harpozep]

Or as they say in England, " Open for trading" or " Are you trading today?" I got that a lot while I was living in London, Selling, er "trading" Cds at Alto Compact Disc LTD. back in the '80's
Semantics for sure...........

 

[MarkHastings]

but that's exactly what you are saying to them when you hand over your money. Sure, you're not saying it with your mouth, but again, semantics, semantics, semantics, semantics...

 

[RobertR]

How? Show me the display in a retailer that says "we are making x amount of profit on this item", or "here is our company balance sheet". It isn't there, and I defy you to show me anyone who looks for such a thing. People are looking for features and price, not profit margins.

 

[Mike~Sileck]

Driving a competitor out of business with "poor business tactics"?

Huh?

Those sound like great tactics to me....

 

[Shane Martin]

Mike,
One of those tactics is by taking said product and taking a loss on it for the short term knowing you can withstand the loss and your competition can't only to run them out of business. This isn't something that I'd call good.

 

[Mike~Sileck]

Shane,

Don't take this personally at all (esp. if you have a personal interest in this convo), but what I meant was more stated in terms of "business sense". If a business entity can eliminate competition (without "feelings" or "morals" involved) I feel that is a "good" business tactic.

While it may not be the most "ethical" thing to do, in terms of strictly business, it is a very "good" tactic...wouldn't you agree?

 

[MarkHastings]

What are you talking about? If you don't realize that businesses are making a profit on your purchase, then I don't know how else to continue this conversation. It's common knowledge that businesses are making a profit on most things they sell to you. I'm not saying that I know exactly how much profit Suncoast is making off me, but I DO know that they are making money off of my purchase. And that is the 'support' that I am giving them by purchasing there as opposed to somewhere else.

It's just a simple example I gave, no need to make it into this big old complicated "word for word" analysis of my response. Every purchase goes toward supporting the store you bought it from. Again, that's just a simple fact, where is the disconnect???

 

[RobertR]

You're missing my point, Mark. People don't buy things based on how much profit the store is making. They don't care (nor should they). That's the concern of the business. Again, show me ANYBODY who says "I want to buy from Suncoast because I want to make them more profitable, or from Target because they make less profit", or who will refuse to buy a product if the business is taking a loss on it. You can't.

 

[Jeff Gatie]

Then don't buy Coke, Pepsi, Ritz Crackers, Welch's Jelly, Jiff Peanut Butter, Tropicana Orange Juice, Bounty Paper Towels, Ocean Spray Cranberry Juice, etc., etc. if it is "on sale" or any popular holiday item (pie crust, sour cream, ice cream, flour, sugar, cake mix, Jell-O, those silly canned onion rings, Bell's Seasoning, turkey, Pepperidge Farm Stuffing, etc., etc.) on sale from November to January 1st in any major supermarket in the US and Canada, if you think this is "bad". These items (and many others, usually denoted by being on an "end cap" display") are what's known as "Loss Leaders" because a store takes a loss on them in order to get you into their market and hopefully change your store loyalty.

I worked my way through high school and college slinging milk and ice cream and building those end cap displays - I know of what I speak.

 

[MarkHastings]

Robert, my post was illustrating how I will often pay more for an item (when I know I can get it cheaper elsewhere) because I prefer to give my money to a particular business.

Example: I will pay up to 10 cents more for gas at this one gas station because I like the guys who run it. I could get the same gas down the street for less, but I don't want to give them my money.This is exactly what I'm saying. I want the gas station (near me) to profit, so I am willing to pay more for their gas. I don't want this guy to go under so I am saying "I want to buy from this guy because I want to make him more profitable".

It's not about me wanting to give this guy my money, it's about making sure he keeps the business so that he doesn't go OUT of business.

 

[RobertR]

Now on display, ladies and gentlemen, the amazing Mark Hastings, who defies the laws of supply and demand, eager to pay MORE for products because he wants to benefit businesses, not himself!' I can see it now, commercials screaming "Buy now! we just raised our prices! Come, make us more money!". Yes, that'll go over REALLY well.

 

[MarkHastings]

You've never bought something from a business because you prefer them to another business???

Did you happen to miss my mention of the threads where people were willing to pay more at Mom and Pop's (because they didn't want to give their money to Wal-Mart)?? I'm not the only one here who does this.

 

[RobertR]

Did you notice that mom and pops that can't figure out how to be more efficient and/or offer greater value usually go out of business, because people don't behave as you apparently do?

 

[MarkHastings]

Sooooo, you're saying that I am not rational?? Whatever. I'm out of here - you're obviously fuckin with me. :frowning:

 

[Patrick Sun]

Mark's just the kind of guy who'll give his business to people who have cultivated a relationship with him on some level that he responds to. There are people who do that, and it's his money, he gets to spends it as he pleases. You could say that the business has earned their money from people like Mark who will stay loyal to that business because they perceive a value in buying items from that business due to familiarity over just any store offering the same goods or services. Sometimes reaching out to the customer in friendly terms allows them to charge their customers more because they perceive they are getting some level of service that they don't get elsewhere. Some people rather buy from friendly stores over rude or impersonal stores, people do value being treated a certain way in their purchasing decisions.

Other people are less picky about who they give their money to in exchange for goods or services, and look for the lowest cost for the perceived benefit of the purchase. Me? I tend to go for the lowest price and suffer impersonal treatment by the store's sales drone to save a few dollars when possible.

 

[RobertR]

I don't disagree with you, Patrick. Mark does indeed perceive those businesses to give him greater value. We all want to do business with people who we think benefit us. What I was taking issue with (unfortunately, Mark took it the wrong way) was the idea that he doesn’t buy because he perceives it to benefit HIM, but to benefit THEM.

 

[Bob Turnbull]

I think you're extending that too far there Robert. I don't remember Mark even really implying that.

He makes a decision that he wants to buy a product to benefit himself. The next decision is "where" to buy that product. If the difference in price is not gargantuan, Mark typically falls back to other deciding points (could be proximity, store ambience or the simple fact that he likes the store/people) instead of just simply the price. Perhaps his choice of the word "profit" wasn't perfect, but he is hoping that since he has made a choice to buy a product to benefit himself, maybe he can (even if only in a small way) help benefit someone else of his choosing.

Anyway, who ever said consumers were rational?

 

[Patrick Sun]

Yeah, I think it goes to intangibles for Mark's decision to frequent one store over another store. The logic being that if Mark wants a store that he is comfortable with to stick around, he needs to shop there more so that the store can be a viable venture and that means helping that store's bottom line (if we extend the profit calculations that far in the final analysis).

Now, the more interesting thing is to figure out how much more Mark could be charged by his favored store and still maintain his business with them. Like Mark would still be happy to pay 2 cents/gallon more for gas at this favorite gas station for its intangibles they offer him, but if they charged him 10 cents/gallon more for gas, would he change his tune about the gas station then?