The Three Tiers of Consumers

The Suckers: These people are those who will pay whatever the sticker price is for anything. Big name brand companies charge top dollar on the lazy consumer.  Examples of this are ADT, Chase Bank/Bank of America, Chase Bank/Bank of America mortgages, State Farm insurance, your local Globo gym.  For companies such as these their business model works... They are usually owned by old wealthy individuals that employ manuscript reading sales people that is based off of shear traffic through front door due to brand recognition.  It is so unfortunate that large companies can cherry pick the easy consumer.  Please note that many times service rendered is great but at a high profit margin.

 

The 2nd tiers:  These are the people who you tell them that its 20% off they go crazy and buy for example the "Groupon" effect.  As explained in a previous post a 15 dollar coupon for 30 dollars is not a good deal when the meal costs 50 dollars, especially when the food is mediocre, and especially if you should have had a meal at home.  Another example of a vendor is Geiko...

"Geiko, saved me a bunch at my car insurance." Yes but that's because State Farm was taking a crazy about of profits.  If I was given a discount so easily then wasen’t the product or service was too expensive to begin with?

The savvy consumers: These people buy only after 1) an analysis if the product/service is even needed and 2) a methodical shopping process where alternatives are competitively bid and then negotiated on final price.  Their vendors are usually smaller, organically grown companies that still believe in the benevolent world.  These companies leans operations to provide optimal value consisting of exceptional product at reasonable price.  Examples of these companies are Simplisafe and boutique real estate service companies.

Its not how much we make but its also about how much we save.  Spending money is necessity without it the economy would not work.  But to give your hard earned dollar to a lazy company is not right.  It is easy to complain about these predator or parasitic companies but we need to vote with our dollars and give them to those to deserve them.