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Sucker for a bargain
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<blockquote data-quote="Rune" data-source="post: 5815992" data-attributes="member: 67"><p>First of all, frugality is not a dirty word. It's like being a tight player in a poker game; sure, it's annoying to the other players--but it's smart play.</p><p></p><p>I predict that spending a little time looking for a bargain before making the decision to purchase something will save you (possibly a substantial amount of) money over the long run, even if you decide to purchase something at full price after doing so.</p><p></p><p>That said, it seems that both you and your friend are missing an important variable in your calculations: utility.</p><p></p><p>In your friend's case, he purchases things only if they have been discounted from their original price without calculating what the product would be worth <em>to him</em>. It may be that the use and enjoyment he would get out of the product could outweigh the original cost, or not--it's a variable that should be included in the equation, though.</p><p></p><p>In your case, you seem to be doing the opposite: chasing bargains you have no need for. If you were to include utility in your calculations, you might (probably) find that even a heavily discounted item is a bad deal for you. (This is why I ditched cable, by the way--sure, I'd get lots of channels, each for pennies per month--but I would only watch a handful of them. Effectively, I'd be paying much more for the channels I would use--and suddenly it's no bargain, at all!)</p><p></p><p>So, the TL;DR version: No calculation of value is complete without factoring in utility.</p></blockquote><p></p>
[QUOTE="Rune, post: 5815992, member: 67"] First of all, frugality is not a dirty word. It's like being a tight player in a poker game; sure, it's annoying to the other players--but it's smart play. I predict that spending a little time looking for a bargain before making the decision to purchase something will save you (possibly a substantial amount of) money over the long run, even if you decide to purchase something at full price after doing so. That said, it seems that both you and your friend are missing an important variable in your calculations: utility. In your friend's case, he purchases things only if they have been discounted from their original price without calculating what the product would be worth [i]to him[/i]. It may be that the use and enjoyment he would get out of the product could outweigh the original cost, or not--it's a variable that should be included in the equation, though. In your case, you seem to be doing the opposite: chasing bargains you have no need for. If you were to include utility in your calculations, you might (probably) find that even a heavily discounted item is a bad deal for you. (This is why I ditched cable, by the way--sure, I'd get lots of channels, each for pennies per month--but I would only watch a handful of them. Effectively, I'd be paying much more for the channels I would use--and suddenly it's no bargain, at all!) So, the TL;DR version: No calculation of value is complete without factoring in utility. [/QUOTE]
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