In these times of economic uncertainty value, durability, and quality are becoming more and more important to us as consumers. What portion of a product’s value is found in the service of the vendor? What is a reasonable amount to spend on good customer service, especially if that service doesn’t include a warranty and therefore ends with the purchase?
I’m a big fan of The Simple Dollar. Through his blog, Trent introduced me to two books on my “books to live by” list (a list that will surely be a post one day soon): Your Money or Your Life by Joe Dominguez and Vicki Robin and Getting Things Done by David Allen. He practices the art of frugality in a way I greatly admire. We often times think of frugality as just being cheap. But value is really at the heart of frugality.
I don’t have enough money to buy cheap stuff. This is a buying philosophy that I’ve been gradually working into my purchases. It doesn’t make sense to buy the less expensive product if it’s going to break down in one year. Especially if the more expensive product costs twice as much but will last four times as long. This philosophy places the whole value of a product above simple price tag comparison. Again, Trent illustrates the point extremely well here.
Another part of value is customer service. I hear a lot these days about how the smart retailers are setting themselves apart from the big box stores through knowledge and customer service. I appreciate the knowledge and friendliness in these shops. I am as excited as anyone about the move from big box stores’ low price/cheap product mentality to the more individualized care of mom and pop shops and local vendors. But this shift brings with it some complications.
As I’ve mentioned here and here, I’ve been researching some purchases lately that I would not consider insignificant. Spending more than $20 on a pair of jeans is a foreign concept to me, but I’m sick of them lasting a year and then falling apart. As for the research, I’ve done a combo of online research and in-store try-on. Through retail websites, forums, and blogs I’ve narrowed my search down to what I think I like based on quality, measurements, and style. Then I’ve gone into the few shops in Portland that carry the stuff I’m interested in to check the fit and look on me personally. Doing the legwork this way has been extremely helpful. I’ve narrowed my search down to a few pair that I’m sure will be great. But I’ve also found myself in a bit of a conundrum: buy local and support the shops I like or get the best price for the product?
Here are a few examples of what I’m talking about:
1. I work in downtown McMinnville, OR. About a half a block away from my office is Third Street Books, our local book store. Let’s say I go in there right now looking for a book I’m interested in purchasing, Getting Things Done by David Allen, for example. If I don’t find it on the shelf, they’re going to check their computer, tell me it’s not in and that they can have it delivered to the store for me to buy. This would be fine, except that I can also order that same book on Amazon.com for $2-5 less. And with Amazon Prime it will probably get here faster.
2. Spring is coming around and the sun is peeking out. I need some new sunglasses. I check out a ton of glasses online, but sunglasses are one thing I will never purchase without trying them on first. I go to the nearest Sunglass Hut and check their selection. When I find one that suits me, I head home and find the same pair on e-bay sold by a reputable vendor for $40 less.
3. The jeans are the situation that is really tough for me. I know the clothing industry, like everything, is hurting right now. I go into these great little shops in Portland—Blake, Nolita and Local35.—and they give me great service and advice. They’re knowledgeable and they help me try on a ton of jeans and don’t bat an eye when I tell them I’m not finished with my research yet and that I’ll be back. But if I find the same jeans for $50, $100, or $150 less online, that’s a tough bargain to pass up.
I believe in good customer service. I believe in paying for it. I want the people I buy from to know and love their products. And I want those products sold locally.
On the flip side, I have limited resources and I want to save money and be frugal.
If you’ve followed me, I can’t even set up a clean dichotomy between high quality and junk or local v. the internet. There is some sort of equation that has to do with quality, service, and knowledge that must equal a fair price. But how do I find that? What is a fair price for helping me buy a pair of jeans that will still fit in six months or a year instead of just right now while I’m in the store trying them on?
So what do I do? For some reason it was very easy for me to make my sunglasses purchase online. I justified this by the fact that Sunglass Hut is a national chain. But does that change anything for the guy working there who missed out on a sale?
Sadly, Amazon.com and my local library get way more of my business than Third Street Books does. The jean shops are my real concern, but this goes for the sunglasses, too. If these shops go away, where do I try on the goods to make sure they fit and look right? Where is the service-oriented employee to walk me through the right purchase for me?
This is a subject that generates more questions than answers. I want to know what you think, how you make your buying decisions. Please leave your thoughts in the comments below.
UPDATE LINK:
Here’s a related post from Seth Godin’s blog that brings out another important point. Make sure you know the difference between luxury and premium goods.
Tags: finances
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I think this has a lot to do with where and how products are made–a side of consumerism that we aren’t necessarily conditioned to be aware of. Of course a mass-made dress from Wal-Mart made in China is going to be cheaper than a hand-sewn dress from a boutique in Portland. The question is what the true cost is–and what, ethically and financially, we feel we can support. I would feel much better knowing that my clothes (and my children’s clothes) were supporting an industry where people are allowed and encouraged to take pride in their work–where creativity and passion is a part of their daily life, rather than simply numbly sewing the same garment hundreds of times in a row. Of course, William Morris recognized this dilemma during the Victorian era, so this is an old argument that is still pertinent!
I have adopted my girlfriend’s simple philosophy when I buy consumer goods: look for a used version first. For example, when I wanted a Weber grill, I found it on Craigslist. It wasn’t in great shape but I replaced the grate and gave it a good scrubbing. I knew it would continue to last because it had survived a number of years with the previous owner. Thrift stores, eBay and Amazon’s list of sellers of used products are places I look. I rarely buy new books, instead opting to browse used book stores. Exceptions to the used rule are clothing and hygenic items that touch any part of my body. There is no way I will ever buy used undies. Not doing it.
I have two good reasons for buying used: personal expense and the environment. Used goods are generally less expensive. Also, if I don’t buy a new grill, then Weber doesn’t make another one, it doesn’t have to ship a new grill to the local retailer and the old grill just I bought doesn’t end up in the landfill.
The thing about buying for value is that many families can’t afford the initial investment of an expensive but long lasting product. If you’ve got the money Jake, then buying jeans with value makes sense. Others will go to Wal-Mart and buy jeans that last a year because $20 is all they can afford to spend at that time and then again the following year.
One last thing – everyone should have at least the option to buy new items for themselves, even if they’re the cheap-os. Imagine being that kid that shows up to school in hand-me-downs each September while the other kids wear gleaming new sneakers and clothing. Kids are cruel and they make fun of the “poor” ones. I think this is precisely how I came to be a grudge-holder.
Like so many other important topics, this is extremely subjective and I think we must all find the balance that works for us. I believe in Capitalism and see nothing wrong with paying the least amount for a product or service – provided I am getting the quality I need and my purchase is not causing harm to others (the subjective part.) One way I like to look at certain purchases is that the service provided is something I am buying as well as the product. For example – if I need a new appliance and a knowledgeable employee helps me make the most informed and correct decision, I feel an obligation to purchase from that establishment. Because if I went and found the same product for cheaper elsewhere, I feel I would be failing to pay for something that was provided to me (the service.) Again, this is extremely subjective and many people have no problem milking free advice/service only to save a few pennies elsewhere. I do this when shopping for airline tickets – start my search at orbitz, find the best deal, and then go directly to that airline’s webpage and save few bucks. I guess I justify it because no human being was involved in the experience.
I agree that it’s a hard spot to be in. I think beyond the small problem of you or I finding a pair of jeans you like for a fair price, is also considering who is making the jeans, where they are from and why are you supporting that brand/company. Lately I’ve found out a lot more about the hand made footwear business and it’s pretty scary. So many factories have closed and there are so few left putting out these special products that have such a great amount of care. The unfortunate part, is that because of the dying factories, even buttons, leathers or cottons are hard to come by, so these prices go up, so instead of buying a Quoddy boat shoe for $220, you can buy a Sperry for $60. So beyond just supporting a retailer like that, by buying locally, you are more likely helping support one of these brands and allowing them to stay alive and continue with their craft.
I am personally guilty of trying to get the best deals I can however, I don’t have heaps of money and I have a problem with buying nice things, so I have to.
In the end, I think finding a balance is good. You don’t have to always buy American or shop at a local boutique, but if you are shopping, it would be good if you did once in awhile at least. In the long wrong, if you didn’t save your $40, you probably made a more interesting human interaction, developed a relationship and probably feel better in the end too.
Some great points you guys make. I think there is definitely something to be said about making a human connection over a purchase. That goes right along with what Niel said about service. I think it’s fair to pay for it, and it’s rewarding. But at what price?
I’m all for the hand made footwear as well. The fact that my Sperry Topsiders are coming unglued from the sole after only a few months worth of wear makes me even more likely to go the Quoddy/Russell Moccasin’s route next time. As long as I can afford it.
First off, nicely written and researched. It’s satisfying to read something online that actually makes sense.
I understand the predicament you are frequently finding yourself in, however I do think you might be over analyzing, thus creating a larger problem for yourself. Although very important to weigh all options and repercussions, as far as I’m concerned, you need to just go with your gut when it comes to most of these issues.
There are SO MANY hidden factors in all of the points and questions you raise, that it would be nearly impossible to answer them all, and you would probably be a different pant size by the time you came to a fully successful, educated conclusion. One very heated debate I often find myself in, and this seems to pertain to your article here, is the idea and the importance of Made In America. I know a clothing brand here in LA, which is Made In Los Angeles… at a factory owned by a very good Korean man, who pays his hard-working employees cash because they are here illegally. I also know that in Ohio, just outside Columbus, there is a Honda plant which employs a huge number of local workers. Which is better to support? Which deserves the coveted Made In America badge? What is more important, my money going to a foreign company, or my money going to foreign employees? My point, is that gut instinct and on the fly math is sometimes your only, and best shot at a real educated guess.
It’s like Ed Norton’s job in Fight Club, you need to be a recall specialist. If X+Y-Z doesn’t equal a sum greater than, say 5, don’t buy. Take what you know for sure about the brand, fit, price, origin, store, style, etc… plug it into your equation, and pull the trigger.
I’m not saying educating yourself is a downfall, quite the opposite, just that no matter the brand, the style, the store, etc, you’re going to find pros and cons. And as much as I think support to certain parties is integral these days, sometimes your personal happiness is even important.
Take care of yourself and in turn, you will take better care of the world, jeans, books and sunglasses the same.
nick
In this case, it’s not a matter of quality vs. quantity (which is typically a pretty easy choice), it’s about frugality vs. guilt. Do you spend your money, taking the “feel good” route of supporting the local vendor, or do you spend some uneasy moments rationalizing the savings in ordering at discount? It seems to me that the next question is: how much money is a clean conscience worth?
And I am not pretending to be on a high horse here. I buy irrigation supplies for my garden and building supplies for my house from Lowe’s. If I buy a book, I’m ordering it from Amazon. And I do this even though, like you, I feel a bit of a pang each time. I guess right now for these situations, I’d rather take the hit to my conscience than to my wallet.
I know a clean conscience isn’t worth bloated consumer debt. It’s problem that I hope to resolve at least partially by traditional capitalistic methods: make more money. Until then, I’ll go with Nick and trust my guts in each situation that arrives. It ain’t easy.
One reason why I don’t read The Simple Dollar as religiously as others is because Trent seems to obsess over each financial decision in his life. I recognize doing so has now become his profession/livelihood, but I guarantee he is not the most exciting guy to be next to at a party. I have an older sister like this. She is very good with money, almost has her house paid off, and will probably retire much sooner and with much more than I could ever dream of; however, she never shuts up about it and sometimes is unpleasant to make plans with (dinner, vacation, etc.) because of the agony that will go behind the decision. I want to be smart with my money and save for the future, but I suppose I just plain don’t care enough sometimes. Even if that means occasionally overspending.
This may be somewhat off the topic but alls I can say is that I will spend an extra $1.02 for General Mills Honey Nut Cheerios instead of Albertsons brand honey with nut Oat Cereal. Same goes for Peanut Butter Cap’n Crunch.
To Niel,
Re: Trent @TSD
“I hear what you’re saying, but I think you misjudge the guy!”
Put down my plate of food and walk out of room, only to reappear through the round window and keep and angry eye on you.
I have to admit, it was a lot easier to worry about the conscience side of purchases before I went back to school. Now every spare minute I have is spent in mindless entertainment or physical activity since my mind is mush by the time I finish class and studying each day. Before, I had more time and funds, which enabled me to put a lot more thought into each purchase.
Now I have specific go-to choices on certain things that balance the conscience, convenience, health, environmental and limited resources/frugality sides of the equation without taking too much of my limited time/energy each time I buy something. It also helps me avoid the whole paradox of choice situation.
For example, I buy a lot of books from Biblio (which is mostly local bookstores). I bought a great book called Uncharitable about giving non-profits the same financial tools of capitalism that for-profit companies have. The price was great, they shipped it quickly and I supported a small book store I never would have had time to go to. My other go-to option is used books through Amazon marketplace or half.com. Doing this allows me to balance all the factors I care about without taking too much time and energy each time I buy a book. The sacrifice is helping my immediate locality though.
Also, I categorically buy things for my bike from local shops. I have benefited from free trail advice, troubleshooting and tools use over the years to make the additional cost well worth it. Here I sacrifice a bit on frugality, but I gain the service and convenience of the local shop and not having to think about the decision.
Also, my wife and I don’t buy certain types of pre-packaged food. We don’t always make it to the farmer’s market for produce and such, but we always get fresh produce/meat. We get a majority of the health benefits from eating well, sometimes the clean conscience of helping a local farmer and it works with our schedules.
Since I don’t have the time, energy or interest in researching each purchase, I do the calculating at the abstract level and then just go with the plan, adjusting it along the way as need be. It’s not perfect, but it works really well for me.