I got a free copy of "Living Rich by Spending Smart" a while ago from the Amazon store, so I've been reading it to pass time while I have no internet and nothing better to do. It's an ok book so far. While not my favorite, it has a lot of good points. Here's one I wanted to share. Their example went something like this:
If you go to a store looking for a pair of shoes, to find they are $75 on sale, but you overhear another customer that the same shoes cost $50 at a store that is 5 walking blocks away, would you walk the 5 blocks? Most would. I know I would.
But same scenario with a living room set. You find the one you want on sale for $2660. Someone comments it's only $2635 at another store 5 walking blocks away. Considering all delivery/payment/reputation are the same, would you walk the 5 blocks to the other store to save $25? The research shows that most would not walk to the other store. Would you? I admit I probably wouldn't. Guilty as charged.
$25 saved is $25 saved regardless, no? Your bank account probably doesn't care where the funds came from, but most of us will discriminate between a 33% savings vs a 1% savings.
Thought I'd share that with you all. It will definitely make me rethink my comparison shopping from now on and to treat money as money and not always a percentage.
That sure does make you think! The psychology of money is interesting. I tend to look at overall % saved quite often, too.
ReplyDeleteI'm actually pretty sure that I would go to another store in both situations but only if it's five blocks away:)
ReplyDeleteI'd go. lol! Actually i'd tell the store I can get it at "blah blah blah" for $25 cheaper and see if they'd knock down the price. If not, i'd be on my merry way. lol!
ReplyDeleteHmmmm, makes you think. I think maybe for me, time would factor in. If I had the time maybe. If in a rush maybe not? Of course if I'm furniture shopping, I'd probably be wise to not be in a rush!
ReplyDeleteThat is a really good quote and point!!!! I guess the bank account does not care!!!
ReplyDeleteThat's an interesting point. I probably wouldn't walk the five blocks for the furniture either, mainly because sales reps take a long time helping you (on commission, I'm sure) and I wouldn't want to mess that up. Although I might ask for a price match!
ReplyDeleteThis is quite interesting. I am probably guilty on both accounts as well... Realistically though, I've been similar situations but it wasn't 5 blocks. If the situation ever was 5 blocks, from now on I would walk.
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