Frugality is not Cheap - BOGFF 22

Over the last few months I've heard some of the following comments and I've worked hard not to respond directly to them.  If you wonder why I stay silent, you have to remember that sometimes common courtesy dictates that the time is not right.  Maybe I need time to process the facts and consider why people say what they say.  Perhaps I am making a judgement that whomever it is, they are not ready for this sort of conversation.  Or, maybe, I was standing in line somewhere and was clearly not meant to be in the conversation in the first place.

However, the time is right for a blog post in an effort to get us all to think about the topic a little bit.

We bought this this disk cultivator in an auction back in October of 2011. There was not much demand for this sort of equipment at the auction we attended, even though prior auctions that year had shown high demand.  We counted ourselves lucky to have purchased this tool - but was it really as good a deal as we thought?

Going back to the original thought process - I've been hearing comments that sound something like these examples:

• "I don't know why I would buy X product from Y business.  Their prices are ridiculous and I can get it for so much less from ..."
• "I shouldn't have to pay that much for Z, I can't believe they think I should pay that much."
• "I know the product from A is inferior, but it was so cheap!  I had to buy several of them."

We all know people who say things that might be very similar to each of these examples.  In fact, each of us may utter similar words and phrases ourselves.  And, perhaps, it is warranted in some situations - assuming we've actually put some real thought into what we are saying.

But, usually, people make such comments for some or all of the following reasons:

1. We like to portray ourselves as being persons who are too smart to be 'victimized' by those who will take away our money by overpricing things AND we like to portray ourselves as being targeted by unscrupulous sellers. 
2. Most of us have been raised in a culture that praises those who can get more for less.  I clearly remember the lessons in product comparison.  Divide the total cost by the units to determine cost per unit and find a 'better' price.
3. We are unable to see a quality difference and (perhaps mistakenly) give each product option equal value in quality and usefulness.
4.  And, even if we do understand the concept of quality, we can't seem to stay away from a "deal," even if we have an inkling that the quality, usefulness and need to acquire that item might be in question.
   

 

We went looking for "heavy duty" hose reels one year and you can read what we ended up going through with it.  This was actually a case where I believe we were trying to locate some quality - but failed to find it.  But, again, let's get back to whatever it was I was trying to say.

Monetary cost is not the same as value

Part of the problem, as I see it, is that we frequently use a one-dimensional measure, monetary cost, in order to assess value.  We devalue quality and we simply ignore the value of work.  We forget that when we buy a cheap product that we end up paying in so many other ways.

If the item isn't a product we have a direct association with producing, we often fail to see where the added value might be.  Therefore, we make the assumption that it should not be as expensive as it is.  On the other hand, we seem to feel like it is ok to complain about other people NOT understanding why products we are involved in creating need to be the price they are.

I bet each of us can recall at least one conversation where this happened.  For instance, I give you this conversation that is loosely based on a real conversation I had years ago:

Person 1: This person came in and took up an hour of time for TWO members of our staff, and we're short staffed already.  They worked so hard to get what this person wanted and then when they asked for payment, the person got all huffy, said it was too expensive and not worth it - and left!

Me: Oh my!  That must have been awful, sometimes people just don't seem to understand how hard your job is.

Person 1: Yeah!  And to make matters worse, we got a phone call from our supplier who said they were raising the price on widgets!  I can't believe it!  I mean we can get widgets from anywhere - there's no reason that we have to pay so much for them.

Yep, there you have it.

Here's the bottom line for me

Frugality is not buying cheap, it is foregoing a purchase when it isn't really needed and saving your purchasing power for when it is needed.  Smart purchases come with the recognition of quality and understanding the value of professional knowledge and experience.  The best value doesn't come from spending little, it comes from spending well.  And, all of this assumes you have the resources to spend at all!

Smart shoppers should be pleased when they receive value for what they pay, just as they should be happy to be paying a fair price.  That fair price helps to insure the continued quality of the product, support for the product and even continued existence of that product.

What's better, buying a quality item that lasts 10 years and costs $110 or a cheap one that costs $10 and lasts one year?   Trick question.  If you do the math, you could argue (ignoring inflation) that the actual monetary cost is better with the cheap product.  But, consider other costs to you that you are ignoring.  Dealing with a broken product at a potentially difficult time.  Making extra trips and and taking extra time to purchase that product over and over again.  Dealing with the broken remnants.  

Then, think about costs that may not be seen by you directly.  How many people were paid inadequate wages to make the inferior item?  Or worse, yet, what sort of shortcuts were used in order to keep the price down so you could get a 'bargain?'

And let's be honest here.  The prices rarely break down that way.  It's more like 10 years costs $110 and 1 year costs $30.  If you are not privileged enough to be able to spend $110, then you are STUCK buying this product at $30 for 10 years and you end up spending far more ($300) - in part because you have no choice.

Products with low monetary cost make us buy them again and again as they break.  We throw more of them into the landfill and go buy another.  AND - this creates a situation where even MORE people are unable to have access to enough resources so they too can have a choice in what they buy.

And then, finally, I submit my last exhibit.

I was recipient of a 'cold call' from a company that was targeting farmers - the actual prompt that got me writing this post.  Apparently "company X" is moving from one warehouse to another.  They have lots of stock they want to sell rather than move.  They suggested that I could get a great deal on "tool Y."  I told them I had what I needed.  The salesperson's response was.  "What if I told you that you could STEAL it?"

Please explain to me how this is a good thing?  Should I feel good if I pay so little for something that I could equate it with stealing?  And, how does paying $x for something I don't need save me money when I don't need it?  

In the end, I have to conclude that frugality is not he same as cheap.  And, enslavement to frugality to the exclusion of allowing for fair compensation for work rendered takes choices and buying power from far too many people.

What do you think?

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What's with the BOGFF 22 in the title?  I (Rob) am giving himself a bit of a blogging break at the end of the year in hopes that it will give me space for more creativity in the future.  Rather than creating a post or two linking the "best of" blogs for the year, while continuing to put out new material, I am resubmitting what I feel were some of the best posts for 2022.  Enjoy!