Comments on: That Price Tag Is A Liar

By: Pilgrim

Pilgrim — Mon, 12 Jan 2009 03:43:19 +0000

You are so right on with that. I laughed when reading the message, because by the time I think to mail in the rebate it is too late. I just wait to find the right deals. Thanks.

By: Hidden Costs of Items, Launch A Startup at 13

Hidden Costs of Items, Launch A Startup at 13 — Mon, 12 Jan 2009 00:34:29 +0000

[...] The Wisdom Journal sheds light on the hidden costs of common items. Do you know what’s built into a typical price tag? [...]

By: Admin

Admin — Sun, 11 Jan 2009 23:16:55 +0000

I absolutely DESPISE mail in rebates. What is the point? I guess it’s that the retailer or manufacturer can advertise a lower price and count on X percent of the people mailing in the rebate forms too late, Y percent not following the instructions to the letter, and Z percent losing their receipts. Oh yeah, another large percentage of the people are just too lazy to go through the hassle. It sounds somewhat like a bait and switch, except for that tiny, tiny print that excuses their tactics.

What about the percentage (like me) who move on to another retailer or manufacturer who doesn’t use these methods? Has anyone got any numbers on that?

By: Aleksandar M. Velkoski

Aleksandar M. Velkoski — Sun, 11 Jan 2009 21:46:41 +0000

Good points. And, I’m not a big fan of mail-in-rebates at all. Price tags are very misleading.

By: abigail

abigail — Sun, 11 Jan 2009 20:41:37 +0000

Definitely good points. I was very annoyed by cell companies recently — particularly T-Mobile, which is our current provider. For new cell phones, there’s a price.

First off, most of those were after mail-in rebate. So, right away, you’re having to fork over cash and then wait to get it back and make the phone free. Meanwhile, that money could be used elsewhere.

Second, the prices were all for two-year contracts. Add $50 to the price for a one-year contract. This, actually, I think is a fair deal. I’d rather pay an extra $50 for a phone and be stuck for just one year, versus potentially paying $150 to cancel partway through a two-year contract. But it’s still another adjustment I have to make in my head.

Third, the prices for the two-year contract were only if you included a data plan. Add — you guessed it — another $50 on if you refuse to pay $25-35 per month for internet access you can get at home on a regular-sized screen. Paying $35/month would increase our total cell bill by almost 50% (and that’s only because it’s a family plan — technically our share is just $10/month).

So, to buy a “free” phone, I’d be looking at chunking down $150-200: $50 for the phone without a data plan, $50 for a one-year contract, and $50-100 that would come back to me in a rebate.

Seriously?!

By: Ray

Ray — Sun, 11 Jan 2009 14:51:38 +0000

Great list. I’ve had similar conversations with my 15 year old son who wants a sports car. Unfortunately, teens rarely recognize the total expense of something like a car or a cell phone and only want what they want because it will impress their friends. I’m guessing a GO Phone is out of the question?

By: Very Evolved

Very Evolved — Sun, 11 Jan 2009 13:48:02 +0000

These rules also apply to things you aren’t purchasing – the hidden cost of free.
This website for example is free for me to read, but it did cost time for you to create and time for me to read.
I have bookmarked WJ now though, and though I have not applied any of the advice from this post yet (I’ve only just read it!), I will be investing more time into your site in the future.

This leads naturally into the hidden benefits of things we buy and do. Perhaps a topic for a follow up post? For example I recently bought a new macbook as in your last example, and because I have it I was able (or more motivated at least) to build my new site and begin writing for fun again.

Patrick
veryevolved.com