This is just such a great deal...let's do it now!
How many times have you heard someone say that? And yes, often it is a great deal if all you do is look at the item at hand. But what is often forgotten is the cost of consumables, services contracts etc., not necessarily by procurement folk (although under pressure to "close the deal" they may sometime capitulate) but from those who can only see two feet in front.
If you look at some of the offers held out for consumers....there is not a great deal of difference on how sales folk wave the magic wand that eliminates rational thought.
Why are printers relatively low in price? Because the cost of the ink is where the most money is made.
Why do telcos offer "free" cellphones when you lock into three years? Because that $100 that you saved (and remember that is not their cost, that is retail price...their cost for the phone is a lot less) is going to make hundreds of dollars for them in revenue.
Extended warranties to protect you? That is the biggest cash cow for many retailers and suppliers alike...
So as always, it is buyer beware. The good deal is good for today. But if you haven't calculated in the tomorrow, chances are this is a wolf in sheep's clothing deal.
If you look at some of the offers held out for consumers....there is not a great deal of difference on how sales folk wave the magic wand that eliminates rational thought.
Why are printers relatively low in price? Because the cost of the ink is where the most money is made.
Why do telcos offer "free" cellphones when you lock into three years? Because that $100 that you saved (and remember that is not their cost, that is retail price...their cost for the phone is a lot less) is going to make hundreds of dollars for them in revenue.
Extended warranties to protect you? That is the biggest cash cow for many retailers and suppliers alike...
So as always, it is buyer beware. The good deal is good for today. But if you haven't calculated in the tomorrow, chances are this is a wolf in sheep's clothing deal.
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