Bait and Switch Economics
Posted August 26th, 2008 at 02:37 PM by Tom
Well here is another frustrated blog entry.
I remember in the past people used to make an honest living. People used to buy quality things and make quality things with those. They would sell these quality items at a fair price and make a fair profit.
Those were the days of the simple economics. Supply and Demand would determine the pricing.
Now-a-days I seem to think that everyone is out to rip you off. In fact I think this is so extreme that this seems to be the main way companies make money these days.
Everything is always on sale, they make you think that you are getting a bargain because you are getting 75% off of something that would never sell at 4x what you are currently paying for it.
Banks ... ug forget about it. Hidden fees, late charges, they tell you something is free but by the time they work their magic you are losing out somewhere. Mortgages another thing ... how can someone figure out what is the best deal?
Cars and car financing. ever try to go to two dealerships and compare the deals they have to see what is the better price? They somehow can sell you a car for $5 and charge you $299/month ...
When you bring in your car to get a "Free" oil change, they high pressure sales you to purchase the $300 service package that will void your lease if you dont get it. They also dont tell you the price of maintenance. Recently at 20,000 miles I needed to change my brakes. The dealership charged $1000.
Hotels ... ever grab a drink from a mini bar? $9 for a bottle of water? Forget about telephone calls.
Interest rates on credit cards.
Oh god dont get me started on cable TV. They offer you the world for $39 ( * for the first 3 months ) in the hopes that you are too lazy to cancel it back to only the services that you wanted in the first place.
Ug ... and how about those things that are cheap or free for 30 days ... but you need to call them up after 30 days to cancel or else they charge you an arm and a leg.
Yes people ... I really think that the economy is run on trickery ... cant people just provide quality goods and services and charge reasonable prices? What is wrong with that?
One thing I believe is a factor is the internet. There are too many people who will go to the local store and waste the store owners time picking out and trying out a model that they want ... then go home and search the internet for the cheapest price.
I personally try to support local businesses even if I pay a little more.
I remember in the past people used to make an honest living. People used to buy quality things and make quality things with those. They would sell these quality items at a fair price and make a fair profit.
Those were the days of the simple economics. Supply and Demand would determine the pricing.
Now-a-days I seem to think that everyone is out to rip you off. In fact I think this is so extreme that this seems to be the main way companies make money these days.
Everything is always on sale, they make you think that you are getting a bargain because you are getting 75% off of something that would never sell at 4x what you are currently paying for it.
Banks ... ug forget about it. Hidden fees, late charges, they tell you something is free but by the time they work their magic you are losing out somewhere. Mortgages another thing ... how can someone figure out what is the best deal?
Cars and car financing. ever try to go to two dealerships and compare the deals they have to see what is the better price? They somehow can sell you a car for $5 and charge you $299/month ...
When you bring in your car to get a "Free" oil change, they high pressure sales you to purchase the $300 service package that will void your lease if you dont get it. They also dont tell you the price of maintenance. Recently at 20,000 miles I needed to change my brakes. The dealership charged $1000.
Hotels ... ever grab a drink from a mini bar? $9 for a bottle of water? Forget about telephone calls.
Interest rates on credit cards.
Oh god dont get me started on cable TV. They offer you the world for $39 ( * for the first 3 months ) in the hopes that you are too lazy to cancel it back to only the services that you wanted in the first place.
Ug ... and how about those things that are cheap or free for 30 days ... but you need to call them up after 30 days to cancel or else they charge you an arm and a leg.
Yes people ... I really think that the economy is run on trickery ... cant people just provide quality goods and services and charge reasonable prices? What is wrong with that?
One thing I believe is a factor is the internet. There are too many people who will go to the local store and waste the store owners time picking out and trying out a model that they want ... then go home and search the internet for the cheapest price.
I personally try to support local businesses even if I pay a little more.
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