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	<title>Comments on: The High Cost of Low Prices</title>
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	<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/</link>
	<description>Investing and Personal Finance</description>
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		<title>By: Mighty Bargain Hunter &#187; Blog Archive &#187; Welcome to the Festival of Frugality</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3865</link>
		<dc:creator>Mighty Bargain Hunter &#187; Blog Archive &#187; Welcome to the Festival of Frugality</dc:creator>
		<pubDate>Tue, 19 Feb 2008 07:40:46 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3865</guid>
		<description>[...] Quest for Four Pillars observes that frugality and low prices have their costs. [...]</description>
		<content:encoded><![CDATA[<p>[...] Quest for Four Pillars observes that frugality and low prices have their costs. [...]</p>
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		<title>By: Nicolas</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3748</link>
		<dc:creator>Nicolas</dc:creator>
		<pubDate>Wed, 13 Feb 2008 03:38:19 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3748</guid>
		<description>Mr. Cheap, 

But you are right, I&#039;m out of line.

Nevertheless, I&#039;ll ad that everyone should try, once in a lifetime, first class in a plain (real first class, not super regular on most canadian airlines i.e. free cookies and 1 extra inch), or be lucky enough to somehow get an upgrade. The experience is quite remarkable.

But maybe I&#039;m just dreaming.

Nicolas</description>
		<content:encoded><![CDATA[<p>Mr. Cheap, </p>
<p>But you are right, I&#8217;m out of line.</p>
<p>Nevertheless, I&#8217;ll ad that everyone should try, once in a lifetime, first class in a plain (real first class, not super regular on most canadian airlines i.e. free cookies and 1 extra inch), or be lucky enough to somehow get an upgrade. The experience is quite remarkable.</p>
<p>But maybe I&#8217;m just dreaming.</p>
<p>Nicolas</p>
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		<title>By: Lise</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3747</link>
		<dc:creator>Lise</dc:creator>
		<pubDate>Wed, 13 Feb 2008 03:16:38 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3747</guid>
		<description>At last, the voice of reason!

Why people expect Rolls Royce quality and service on a used Dodge budget is beyond me.

But we should all refuse to put up with surly/bad service. Regardless of the price, sales staff are paid to be customer service agents. I&#039;m not even asking for a smile. Just courtesy.</description>
		<content:encoded><![CDATA[<p>At last, the voice of reason!</p>
<p>Why people expect Rolls Royce quality and service on a used Dodge budget is beyond me.</p>
<p>But we should all refuse to put up with surly/bad service. Regardless of the price, sales staff are paid to be customer service agents. I&#8217;m not even asking for a smile. Just courtesy.</p>
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		<title>By: Mr. Cheap</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3736</link>
		<dc:creator>Mr. Cheap</dc:creator>
		<pubDate>Tue, 12 Feb 2008 17:21:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3736</guid>
		<description>lol after my comment on your post today I was wondering if I should refer back to this! ;-)</description>
		<content:encoded><![CDATA[<p>lol after my comment on your post today I was wondering if I should refer back to this! <img src='http://www.four-pillars.ca/wp-includes/images/smilies/icon_wink.gif' alt=';-)' class='wp-smiley' /> </p>
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		<title>By: Four Pillars</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3735</link>
		<dc:creator>Four Pillars</dc:creator>
		<pubDate>Tue, 12 Feb 2008 17:10:39 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3735</guid>
		<description>Just to add to this - I would say discount brokerages are a good example of where people want the lowest prices but the best service... :)</description>
		<content:encoded><![CDATA[<p>Just to add to this &#8211; I would say discount brokerages are a good example of where people want the lowest prices but the best service&#8230; <img src='http://www.four-pillars.ca/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> </p>
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		<title>By: Mr. Cheap</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3723</link>
		<dc:creator>Mr. Cheap</dc:creator>
		<pubDate>Tue, 12 Feb 2008 03:02:19 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3723</guid>
		<description>Nicolas:  If I may put a damper on your comment, I think we all know that big customers get preferential treatment from businesses.  

If a company has promised you preferential treatment from service bundling, I&#039;d be skeptical whether you&#039;re actually receiving any different service than unbundled customers (what a great way to up sell people to bundles!  &quot;honest man, if you buy the complete bundle we&#039;ll actually solve your problems when you call!&quot;)

My point was that most companies aren&#039;t explicitly offering different levels of quality of service at different prices (with airline travel being the notable exception).</description>
		<content:encoded><![CDATA[<p>Nicolas:  If I may put a damper on your comment, I think we all know that big customers get preferential treatment from businesses.  </p>
<p>If a company has promised you preferential treatment from service bundling, I&#8217;d be skeptical whether you&#8217;re actually receiving any different service than unbundled customers (what a great way to up sell people to bundles!  &#8220;honest man, if you buy the complete bundle we&#8217;ll actually solve your problems when you call!&#8221;)</p>
<p>My point was that most companies aren&#8217;t explicitly offering different levels of quality of service at different prices (with airline travel being the notable exception).</p>
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		<title>By: Nicolas</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3722</link>
		<dc:creator>Nicolas</dc:creator>
		<pubDate>Tue, 12 Feb 2008 00:46:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3722</guid>
		<description>&quot;It would be reasonably straightforward to start a “high class” version of any of these services. Double the price and spend the extra enhancing the service. The fact that no such services exist makes me suspicious there just aren’t enough customers who are willing to support them (with their dollars).&quot;

If I may put a damper on this paragraph, a lot of those companies do offer &quot;unofficial&quot; better service. If you are a good client (good meaning paing lots for cable, internet, phone...), you will get a quicker answer when you call customer services.

Which companies do it? I won&#039;t tell but I know a few from my working experience.

Nicolas

PS: I hate the WJ light/jokes/too friendly attitude. But then again, I also hate to absence of service on AC.</description>
		<content:encoded><![CDATA[<p>&#8220;It would be reasonably straightforward to start a “high class” version of any of these services. Double the price and spend the extra enhancing the service. The fact that no such services exist makes me suspicious there just aren’t enough customers who are willing to support them (with their dollars).&#8221;</p>
<p>If I may put a damper on this paragraph, a lot of those companies do offer &#8220;unofficial&#8221; better service. If you are a good client (good meaning paing lots for cable, internet, phone&#8230;), you will get a quicker answer when you call customer services.</p>
<p>Which companies do it? I won&#8217;t tell but I know a few from my working experience.</p>
<p>Nicolas</p>
<p>PS: I hate the WJ light/jokes/too friendly attitude. But then again, I also hate to absence of service on AC.</p>
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		<title>By: Lewis Empire</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3721</link>
		<dc:creator>Lewis Empire</dc:creator>
		<pubDate>Mon, 11 Feb 2008 20:41:04 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3721</guid>
		<description>I think the really sad thing is that the general public has come to accept that bad service and low quality should be the norm.  As market pressure forced companies to lower their prices they reacted by dropping service. It happened so gradually that we all hardly noticed.  Now, people who have been willing to pay a premium for better service have no options at all.

What&#039;s interesting is that people have completely de-valued their time throughout the whole process.  Explain to me why someone would drive 30 kms across a city, spend over an hour of their time (and consume the fuel for travel)  to save $0.01 / litre on gas?  Even on minimum wage, the total loss would be  24X the potential savings!

Can a direct flight save you an hour or two?  How about the potential for a delay, lost lugguage, risk of death (ok that&#039;s a little extreme) etc.  All these things add up.

If nothing else, we need to factor in all of our time and energy when making purchasing decisions.  If one store costs 10% more but you get help right away and don&#039;t need to drive back and forth for more parts all weekend, I&#039;d say pay the price and write off the extra cost as money buying you happiness!</description>
		<content:encoded><![CDATA[<p>I think the really sad thing is that the general public has come to accept that bad service and low quality should be the norm.  As market pressure forced companies to lower their prices they reacted by dropping service. It happened so gradually that we all hardly noticed.  Now, people who have been willing to pay a premium for better service have no options at all.</p>
<p>What&#8217;s interesting is that people have completely de-valued their time throughout the whole process.  Explain to me why someone would drive 30 kms across a city, spend over an hour of their time (and consume the fuel for travel)  to save $0.01 / litre on gas?  Even on minimum wage, the total loss would be  24X the potential savings!</p>
<p>Can a direct flight save you an hour or two?  How about the potential for a delay, lost lugguage, risk of death (ok that&#8217;s a little extreme) etc.  All these things add up.</p>
<p>If nothing else, we need to factor in all of our time and energy when making purchasing decisions.  If one store costs 10% more but you get help right away and don&#8217;t need to drive back and forth for more parts all weekend, I&#8217;d say pay the price and write off the extra cost as money buying you happiness!</p>
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		<title>By: SavingDiva</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3720</link>
		<dc:creator>SavingDiva</dc:creator>
		<pubDate>Mon, 11 Feb 2008 19:31:38 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3720</guid>
		<description>I  wish that I was able to spend a little bit of more and receive better service for a few different things....but the services just don&#039;t exist...they just charge more for the same thing  :(

I do pay more for organic food (produce, milk &amp; eggs)...I also pay $7/month more for a gym that is more convenient and nicer than the cheapest gym in town...</description>
		<content:encoded><![CDATA[<p>I  wish that I was able to spend a little bit of more and receive better service for a few different things&#8230;.but the services just don&#8217;t exist&#8230;they just charge more for the same thing  <img src='http://www.four-pillars.ca/wp-includes/images/smilies/icon_sad.gif' alt=':(' class='wp-smiley' /> </p>
<p>I do pay more for organic food (produce, milk &amp; eggs)&#8230;I also pay $7/month more for a gym that is more convenient and nicer than the cheapest gym in town&#8230;</p>
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		<title>By: Gates VP</title>
		<link>http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/comment-page-1/#comment-3719</link>
		<dc:creator>Gates VP</dc:creator>
		<pubDate>Mon, 11 Feb 2008 19:00:01 +0000</pubDate>
		<guid isPermaLink="false">http://www.four-pillars.ca/2008/02/11/the-high-cost-of-low-prices/#comment-3719</guid>
		<description>&quot;Personal Luxury&quot; actually seems to be a difficult sell these days in the fight for lower prices.

I know that I&#039;ve personally spent money to support the endeavors that I enjoy. From the local coffee shop getting extra tips or business to the card shop that fueled my Magic habit, I&#039;ve actually been willing to put in extra money to help them keep margins. My swing dance group uses the local legion for Saturday dances (when nothing else is on) and I specifically dropped $10-15 / head (me and the girl) on the first few weeks to ensure that they liked the traffic.

Personally, I think that we&#039;ve really eschewed quality for quantity and that the cycle is such that everything is suffering. I can see the crunches on planes as &quot;being fair&quot;, but my new vacuum cleaner doesn&#039;t even come with a 5-year warranty. I&#039;m willing to pay more so that I don&#039;t have to waste time buying a new vacuum every 2 years.

Same goes for health. How many of us have ever employed the services of a nutrionist, a dermatologist, a massage therapist (or reflexologist or acupuncturist) or a personal trainer? How many of us could greatly benefit from these services but just can&#039;t &quot;justify&quot; the cost? (I&#039;ve done a few of these and even I think that I&#039;m short) How many people don&#039;t eat well b/c it costs twice as much?

I honestly think there&#039;s some type of &quot;local maxima&quot; for this stuff. We may not be there with the airline yet, but we&#039;ve really crossed that point with health.</description>
		<content:encoded><![CDATA[<p>&#8220;Personal Luxury&#8221; actually seems to be a difficult sell these days in the fight for lower prices.</p>
<p>I know that I&#8217;ve personally spent money to support the endeavors that I enjoy. From the local coffee shop getting extra tips or business to the card shop that fueled my Magic habit, I&#8217;ve actually been willing to put in extra money to help them keep margins. My swing dance group uses the local legion for Saturday dances (when nothing else is on) and I specifically dropped $10-15 / head (me and the girl) on the first few weeks to ensure that they liked the traffic.</p>
<p>Personally, I think that we&#8217;ve really eschewed quality for quantity and that the cycle is such that everything is suffering. I can see the crunches on planes as &#8220;being fair&#8221;, but my new vacuum cleaner doesn&#8217;t even come with a 5-year warranty. I&#8217;m willing to pay more so that I don&#8217;t have to waste time buying a new vacuum every 2 years.</p>
<p>Same goes for health. How many of us have ever employed the services of a nutrionist, a dermatologist, a massage therapist (or reflexologist or acupuncturist) or a personal trainer? How many of us could greatly benefit from these services but just can&#8217;t &#8220;justify&#8221; the cost? (I&#8217;ve done a few of these and even I think that I&#8217;m short) How many people don&#8217;t eat well b/c it costs twice as much?</p>
<p>I honestly think there&#8217;s some type of &#8220;local maxima&#8221; for this stuff. We may not be there with the airline yet, but we&#8217;ve really crossed that point with health.</p>
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