As editor of A reader who noticed yesterday's post on the "$20 Per Gallon" book shared an item on another new book that has implications to all manufacturers -- including plastics processors.
The book, "Cheap: The High Cost of Discount Culture," is by Ellen Ruppel Shell, a correspondent for The Atlantic Monthly. She laments how America has been transformed by consumers' relentless fixation on low price.
As she explains in an interview on National Public Radio, this is not just a trend that's about Wal-Mart. Even upscale retailers and restaurant chains cater to consumers' desire for low-price deals that aren't necessary good products.
Here's a statistic that Shell cites: more than 30 percent of consumer goods now are sold at a discount, because marketers know that's what they need to do to attract buyers.
Is it true that no one wants to pay for quality? And what does that mean to manufacturers who are eager for consumer spending to pull them out of the recession?
Comments (2)
There are three sides to this story:
1. Marketers have been marking up the prices of products and then provide discount on the marked-up price to create "savings" for consumers. After a long time of such influence, consumers have formed a habit of looking for bargains. Once formed, habits are very difficult to change. Marketers have in turn shot themselves on the foot.
2. Consumers do not really walk the talk. They might say that they want quality, or "green" products, buy when it comes to actual purchasing decision, their attention is always drawn to the "bargains" and "savings".
3. Companies that source off-shore relentlessly squeeze their suppliers on their profit margin, forcing them to cut costs, and in turn, cut corners. Many people blame China for low-quality products. But what people do not realize is that it is not because China cannot produce high-quality products, it is because the companies sourcing from China squeeze suppliers so hard that it is impossible for them to supply quality products for what they are paid for.
Posted by Arthur | July 15, 2009 2:07 PM
Posted on July 15, 2009 14:07
I am curious why we never hear about polymers made from Wheat? There is exciting new developments which would slow the reliance on Oil prices and give a massive injection to the farming economy of the US making the US independant of world reliance. Also Wheat polymers are bio degradable and as such better for the environment.
Posted by Ron Ruys | July 19, 2009 11:28 PM
Posted on July 19, 2009 23:28