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DISCOUNTS vs. VALUE

Let's say I have two CD players for sale. Player "A" retails for $700. Player "B" retails for $1200, but is on sale for $699. They're both current models, and they have the same warranty. When I do an A-B comparison between the two, player "A" clearly outperforms player "B". Believe it or not, many people will still have a difficult time deciding which one to buy - the lure of the discount will sometimes overpower common sense.

There's nothing wrong with wanting a good deal, but I think we need to reconsider what that really means. Here are two examples to illustrate the point:

1) Consider the customers who bought an expensive Linn turntable from me 20 years ago. They've had 2 decades of enjoying recorded music at a level they never thought possible. They've expanded their musical horizons; and, while reaping the benefits and satisfaction of owning the best, they've avoided the hassle and expense of ever having to replace that particular piece of equipment. Yes, these folks bought an expensive product with little or no discount (not that they'd remember after 20 years anyway), yet they'll all tell you that it was a great deal!

2) Let's say you purchase a so-so piece of equipment, and you get it for 50% off. Over time, you grow disenchanted with it, you use it less and less, and eventually you'll want to replace it. Not only do you have to spend your money all over again, but you never even got to derive any satisfaction from the first piece of gear, because it simply was not good enough to make you want to use it! Half price or not, that's NOT a good deal.

Although budget may often play an important role in your purchase decision, the size of the discount should not.