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The Price of Cheap

| posted by Fast Company staff

I did an interview recently with a reporter from a major women's publication who told me that when they ask readers for tips about shopping the number one response they get back is "I go to a great store, buy the perfect dress, take it home, don't take the labels off, wear it to the event and then take it back to the store for a full refund." There's an article in yesterday's edition of The New York Times about people going into Starbucks and getting a basic up of coffee and then going to the condiment bar and enhancing it up to mocca frappichino standards -- for no additonal cost. A disk jockey I know says the worst part of his job is all the "theft-protection" packaging he has to wade through just to try out a CD the record company has sent him. It seems that in a culture in which "okay, available and cheap" is the standard, the best product is the free one, whether we have to borrow or steal it. I'm thinking about this as the unbearable narcissism of the market: I want what I want when I want it, and who cares what it costs -- others.

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Recent Comments | 9 Total

September 21, 2006 at 12:11pm

Andi Gonzalez

There is some sort of middle ground (and maybe a market opportunity) rising out of this type of behavior. It doesn't work in every case, but luxury rentals is a growing business.

Everyone's probably heard of bagborroworsteal.com where you can rent designer handbags, but I recently had the opportunity to save a ton with a similarly themed site called Gagas.com.

Gagas.com has kids dressy clothes for rent, and since I had a wedding to take my three kids to, it was a great way to save a ton of money by renting instead of buying stuff I knew they would only wear once.

Maybe if more businesses step up to address what the consumer is really looking for, they'd do well and people wouldn't have to resort to things like buy-wear-return.

September 21, 2006 at 12:30pm

M. Herman

Not mentioned in the article (and what I sort of expected to read about after spying the title of this post) is the price paid by the consumer.

The cost of this kind of action leads to a mentality of taking advantage of a system, then of a person, then of all people. The consumer's character, integrity, and least of all, their reputation are all damaged. Sometimes beyond repair if the the mindset is not changed.

I recently took a rented video game back to Blockbuster in order to rent it for another week. The cashier took me that I could keep it for another 5 days if I wanted to because of their "no late fee" policy. My response shocked him. I replied, "Actually, I'd really prefer to pay for the next week of rental now instead of taking advantage of the system. I originally paid for one week the first time, so I should keep my word if I expect Blockbuster and others to do the same for me."

It's a mindset, a subset of one's worldview, that directs and guides our decisions -- from the smallest things to the largest choices we make every day.

It not only feels good to do the right thing, but it adds another brick to the house of integrity we all host. We also get a brick for our domicile of character. These are sacred houses that are desicrated with our faulty decision-making, or built stronger with our right choices.

That's my take. Great post FC!

September 21, 2006 at 1:02pm

mahendrakumardash

The posting of Kate can not be generalised.Few may be there where some one does not buy.Cheap is no doubt acceptable and about 'free'posting something is meaningless because every one will like 'free'something.But the quality and reasonable price ultimately stay on and I believe,Kate will agree on it.

September 21, 2006 at 1:06pm

mahendrakumardash

The exception is posted.No doubt every one likes it free.But normally if the same client goes to the market and the same shop,he will not like to see him again who does not purchase and takes only free benefits.He has opened the shop for his benefit only and it is to be accepted as a fact.

September 21, 2006 at 5:27pm

Mike

"I go to a great store, buy the perfect dress, take it home, don't take the labels off, wear it to the event and then take it back to the store for a full refund."

I recently read of a similar practice where college students buy new textbooks, Xerox them, and return them for a refund. There's a name for both of these practices. It's called stealing and we all pay for it in higher prices.

September 21, 2006 at 9:01pm

divya

Everyone loves free stuff. I am one of them.

To berate those who do, doesnt help us in resolving what we can do.

College textbooks are generally priced much beyond what a student can afford (given that the university pretty much polishes you of whatever money you have). College textbooks can definitely be cheaper if printed on cheaper quality paper, with no color, and fancy CDs (might as well put the content online).

September 21, 2006 at 9:38pm

Frank F

This "Free for all" mentality is paid for by all consumers, not just the insecure ones who buy into "name=quality=social standing". What is this behavior saying about us as a society? Everyone pays more because of this. Feel you MUST have a unique "Fufufifi" handbag or wallet like everyone else? Buy it.. Put it on credit...but be honest!!

Not saying there isn't a market for quality goods at a decent price. Quality Endures and is a better choice, especially for the poor. The "trick" is to pick classic styles and stay away from today's fad, the "Nom du jour"... Why pay 300 bucks for a handbag to carry your maxed out credit cards and a half used tic tac? Fasionable and "with it" as it seems... Since when does THAT make sense? And what business wants THIS kind of repeat business??

September 21, 2006 at 10:20pm

Paul

You paying for a grande Mocha Frappucino? You are paying for the free condiments and then some. That's capitalism. The people ordering basic black get their goodies paid for by the people who pay for the premium stuff. The folks that have to have the latest in fashion subsidize the clothes that are sold in the discount store and the cocktail dress scammers. I don't see Bloomingdale's or Starbucks threatening bankruptcy. So why the moral tirade? There's something here for everyone.

September 24, 2006 at 11:45pm

carolyn

i very much appreciated the return policy of stores while living in the US, as we did not have that where i originally come from. so, if you make a stupid purchase or a wrong, you were stuck with it, whilst in the US, you could return it.

but this relaxed return policy also resulted in people taking advantage such as the example given. people need to have more of a conscience and not treat stores as a free loan store.

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