Did you happen to catch the segment on 60 Minutes (October 7) entitled âSticker Shock: Why are glasses so expensive?â The segment covered the world’s largest eyewear company, Luxottica. The Italian firm began making eyeglass frames from goat horns and has grown to dominate the world market. The show demonstrated that if you don’t go to places like Walmart or Costco, you could easily be spending hundreds and hundreds of dollars for a pair of glasses that cost $30 just 10 years ago.
I remember when our daughter was in grade school, she came home one day and asked Sue: âMom, I want an Abercrombie & Fitch t-shirt because all my classmates have them.” This is when we had our first discussion about value and price. What is it that makes an Abercrombie & Fitch shirt so much more valuable than the shirts at Walmart for 1/3 the price?
Brand names have a significant influence on our perception of value. Peer pressure and keeping up with the status quo drives our perceptions of value. When you go to the grocery store, do you purchase store brands or name brands? Whatâs the difference between Walmart butter and Land O Lakes? Butter is butter, right?
Our brand preferences are passed on to us from our parents. Why do we still buy Campbellâs soups? Because mom always got Campbell’s soup. We are victims of those TV commercials too. Odds are that if you are watching football, you will be eating Papa Johnâs pizza and drinking Coors beer.
Our value perceptions are deeply personal. Some of us may be willing to pay âstreetâ price for Super Bowl tickets, at prices in the hundreds of dollars, because we have to âbe there.â For others, watching the game on TV with friends is just fine at no additional price.
When was the last time you challenged your value perception? Next time you go to the grocery, ask yourself to try the store brand â just once. You may be surprised that the family wonât know the difference when it is on the table at dinner.
The taste, texture, and appearance may be quite similar between the name brand and store brand. Think of how much you just might save in price. I know, there are things that we consider priceless. So donât start with them.
Keep those letters coming, folks. Send your questions and ideas to: Sun Day, Frugal Forum Column, P.O. Box 7505, Algonquin, IL 60102, or, by email to: thefrugalforum@gmail.com
