Mr. Peasant On The Three Kinds Of Shoppers

Sears Hawthorn Center,  2006

Price is what you pay. Value is what you get.

WARREN BUFFETT

In my experience, there are three kinds of shoppers--budget, value, and luxury. If you peruse the offerings of various producers, they target their products for these three kinds of shoppers. For instance, Toyota offers Toyota, Scion, and Lexus as distinct brands of cars. Casio has their cheap watches, their G-Shock line, and the Edifice brand. Whether you have a little or a lot to spend, there is a product for you. Unfortunately, many shoppers have no clue about the relationship of price to value and end up disappointed with their purchases.

1928 - Sears Roebuck and Co. - 15 Jun MC - Allentown PA

1. The Budget Shopper

The budget shopper only looks at the price tag of a product. These are the types of folks that keep the dollar store in business. The tragedy is that these cheap products aren't even worth the dollar. As a friend once said to me, "If you pay cheap, you pay twice." You don't want to be the budget shopper.

2. The Value Shopper

The value shopper is the shopper with brains. This shopper looks not just at the price tag but the product itself. The value shopper understands the quotation from Warren Buffett about price and value. The most important thing is to buy value even if it costs more. In the long term, it will save you money as the value shopper only pays once. As they say, "Buy once, cry once." If you buy value, there will be fewer tears.

3. The Luxury Shopper

The luxury shopper is a cousin of the budget shopper. The luxury shopper wants value but assumes that value comes with a high price tag. Sometimes, they buy junk because they only looked at the price tag and not the value of what they were buying. I recall some fashionable watches that sold for a lot of money but were worthless for keeping time. They were more for fashion than function. Another is a brand of tools that are not any better than what you can get from a big box store, but they cost a fortune because of their branding and marketing. I don't see the wisdom in overpaying for value or no value.

1955 - Sears Roebuck and Co. Allentown PA

The Way To Go

By this point, the Gentle Reader should have gotten the message that the value shopper is the smart shopper. Being a value shopper requires more effort, but it is worth the effort. It means reading reviews and asking people for their recommendations. Mrs. Peasant hates having to do this sort of leg work to buy decent stuff and yearns to go back to the days in the 80s and 90s when you could buy something decent off the shelf of your local K-Mart, Sears, or JCPenney without a second thought. Today, inflation is calling the shots, and retailers play their games. The value of the US dollar diminishes daily, and this is going to be reflected in the prices and values of products.

One of the bitter lessons I have learned as a value shopper is that a good brand doesn't always remain a good brand. Private equity firms love to buy good reputations and hollow them out for short term profits. It is sick, but you still have to be a value shopper. It is the only way to play and win the game.

1960 - Sears Roebuck and Co. Allentown PA

When I find value, I share the information. I don't do Amazon reviews, but I do write blog posts. I have discovered that you can find value at a low price point. These products aren't dirt cheap, but they don't cost a fortune either. I keep the radar on for these sorts of things.

I hope this guide to the three kinds of shoppers helps you, Gentle Reader, to decide to become a value shopper. Thank you for reading!