Why is it This Way?

JimW1949

Senior member
Mar 22, 2011
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Last week when I was bowling on the Thursday night league, a couple of the guys from the opposing team were talking. I wasn't really trying to listen in on their conversation, but they were right there next to my team and it was hard NOT to listen. I didn't hear all of the conversation, but I heard enough of it to get the idea of what they were talking about.

It seems one of the guys bought a new car, and he wasn't real happy because he wanted an option (not sure which one, it was my turn to bowl at the time) and he couldn't get that option without taking a complete option package. Just suppose that the option he was talking about was instead of a CD player he wanted a MP3 player. But to get the MP3 player he had to take an option package that included power windows, power door locks, power seats, rear window defogger and an MP3 player. Let's also suppose this option package was an extra $750. But all he really wanted was the MP3 player which would normally cost, let's just say $50 more than a regular CD player. So he had to pay an extra $700 just to get the $50 extra MP3 player. I can see it if you were to buy a vehicle that was on the dealers lot, you would have to take whatever options were on that vehicle. But this guy ordered the vehicle because they didn't have what he wanted on their lot.


What I am trying to get at is, why do we have to pay for several things we don't want, just to get the one thing we do want? This is true not just about vehicles, it is true about all sorts of things. Take for instance Satellite TV. We had Dish Network for many years. One day the wife wanted to watch a particular show that was only on some channel from Atlanta. So I called Dish Network and told them we would like to be able to get that channel. They said it wasn't a problem, but we had to take a package deal in order to get that channel and it would cost an extra $9.95 per month. I explained that we only wanted the one channel and would not be watching the other channels, but they would not activate just the one channel, we had to take the whole package. Not wanting to upset the wife too much, I said we would take the package, but once again the consumer gets bent over. But it isn't any different with cable TV, they have the same type thing where you have to take a package deal if you want certain channels. I hate paying for several channels I don't watch just so I can get the one or two channels that I do watch.

Why do we accept this from vehicle manufacturers, satellite TV providers and Cable Companies, but we do not accept it from other places? I mean, suppose the wife sends you to the supermarket to pick up a gallon of milk. You get to the supermarket, go to the dairy cooler, grab the gallon of milk and head to the checker lady. Suppose the checker lady says that you can't just buy a gallon of milk, the milk comes as a package deal. Along with a gallon of milk you also have to buy two pounds of ground beef, some hamburger buns, a bottle of Dijon mustard and a jar of pickles. I am quite certain you would tell that checker lady where she could stick that gallon milk, although I don't really think it would be medically possible.

Same thing goes for the hardware store. I can go in and buy three 1/4 in bolts 2 inches long. They don't tell me I also have to buy a pound of nails, 3 wrenches and a jug of weed killer.

Anyway, my whole point is that we don't accept paying for things we don't want to get the one thing we do want in some purchases, but we just take this crap for granted when it comes to other purchases. Why is that?
 

coxmaster

Diamond Member
Dec 14, 2007
3,017
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Because it is cheaper to offer things in a bundle. Less configurations available makes it cheaper to produce.
 

Farang

Lifer
Jul 7, 2003
10,913
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Economics. For TV, let's say ESPN costs the cable company $2 per viewer (it is the most expensive of all cable channels). ESPN uses that revenue for its production and takes some as profit. If cable channels were to be a la carte, to get the same income (to create the same quality of production) ESPN would have to charge a much higher price, the reason being there would be much fewer viewers. Let's say that price is $10. Other cable channels would be more affected, because they would lose more viewers (are less popular). The food network might be $20. Travel channel $25, etc. In the end its more expensive for the consumer, worse for everybody.

The car I imagine is already manufactured, so the only cars built with that player are the ones with the package.
 

shortylickens

No Lifer
Jul 15, 2003
80,287
17,082
136
Because it is cheaper to offer things in a bundle. Less configurations available makes it cheaper to produce.

This.

Also, businesses want you to spend as much money as possible. So if they include 2 things you want and 12 things you dont, you are forced to spend more money whether you really want to or not.

See also:
Albums. Restaurant food. Computers. And college.
 

JimW1949

Senior member
Mar 22, 2011
244
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So the consensus here is that because a "package" is cheaper for the manufacturer, therefore it is cheaper for the consumer. I understand the concept of that, but I don't agree it should be this way. I just think it is wrong for companies to essentially "force" people to buy things they don't really want and then pass it off as if they are being the "good guys" and are saving consumers money.
 

coxmaster

Diamond Member
Dec 14, 2007
3,017
3
81
So the consensus here is that because a "package" is cheaper for the manufacturer, therefore it is cheaper for the consumer. I understand the concept of that, but I don't agree it should be this way. I just think it is wrong for companies to essentially "force" people to buy things they don't really want and then pass it off as if they are being the "good guys" and are saving consumers money.

The only option other than package deals is to automatically charge everyone more regardless of features/options.

Which one sound better to you? Everybody pays more, or just people that want extra pay more..
 

paulney

Diamond Member
Sep 24, 2003
6,909
1
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Typically with cars you are able to get just the feature you want. It may cost half the package, but it's available.
 

rudeguy

Lifer
Dec 27, 2001
47,351
14
61
The only option other than package deals is to automatically charge everyone more regardless of features/options.

Which one sound better to you? Everybody pays more, or just people that want extra pay more..

everyone

its the only way to be fair.
 

JimW1949

Senior member
Mar 22, 2011
244
0
0
I don't want to get into a big argument about it, I just happen to think this "option package" crap is nothing more than a polite way of saying, "Bend over, here it comes." I guess the biggest thing that bothers me about it is that we all seem to be more than willing to get bent over like this. Even worse, I am guilty of it too, and it never even dawned on me until a few nights ago when I overheard the guy talking about it.
 

rudeguy

Lifer
Dec 27, 2001
47,351
14
61
I don't want to get into a big argument about it, I just happen to think this "option package" crap is nothing more than a polite way of saying, "Bend over, here it comes." I guess the biggest thing that bothers me about it is that we all seem to be more than willing to get bent over like this. Even worse, I am guilty of it too, and it never even dawned on me until a few nights ago when I overheard the guy talking about it.

its the way the world works

a burger and fries costs more than a happy meal
buying fruit by the piece costs more than buying a fruit basket
 

JimW1949

Senior member
Mar 22, 2011
244
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0
its the way the world works

a burger and fries costs more than a happy meal
buying fruit by the piece costs more than buying a fruit basket
But what if I only want one apple? Is it right that I have to buy a whole fruit basket just to get one apple?
 

paulney

Diamond Member
Sep 24, 2003
6,909
1
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I don't want to get into a big argument about it, I just happen to think this "option package" crap is nothing more than a polite way of saying, "Bend over, here it comes." I guess the biggest thing that bothers me about it is that we all seem to be more than willing to get bent over like this. Even worse, I am guilty of it too, and it never even dawned on me until a few nights ago when I overheard the guy talking about it.

On the flip side, think about it: these amenities in the package did not show up o the manufacturer's whim. There were polls and surveys of the prospective/existing buyers on what they want to expect from the car. These packages are popular, because majority wants them.

Now if you want to be unique and order just a single feature, you can, but in the end you are the one hurting yourself. If you try to sell the car later, you will have a hard time doing it, because it lacks all the other 'package' things people expect of it.
 
Oct 27, 2007
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What I am trying to get at is, why do we have to pay for several things we don't want, just to get the one thing we do want?
You don't have to. If people didn't pay then manufacturers/dealers/service providers would get the picture and not do it. But your bowling friend did pay. What motivation does the dealership have to offer cheaper packages when people are paying for the more expensive ones?
 

rudeguy

Lifer
Dec 27, 2001
47,351
14
61
But what if I only want one apple? Is it right that I have to buy a whole fruit basket just to get one apple?

a better comparison would be what if you only wanted one orange slice. You can...you just have to search for it and you will end up paying a premium.
 

JimW1949

Senior member
Mar 22, 2011
244
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You don't have to. If people didn't pay then manufacturers/dealers/service providers would get the picture and not do it. But your bowling friend did pay. What motivation does the dealership have to offer cheaper packages when people are paying for the more expensive ones?
I guess you are right, the guy didn't HAVE to take the option package. But at the same time, he wanted ONE option and to get it he HAD to take the option package. So in one sense, he really did have to take it.

As far as having more options make it easier to sell a vehicle, I agree that it does, but at the same time the more options you have the more potential problems you have.

Additionally, when I buy a car I don't necessarily buy it with trading it in, or selling it, in mind. I buy the car with the idea that I need transportation and what can I get in order to get the most bang for the buck. I normally keep a car as long as I can until the repairs start to get out of hand, then it is time to get rid of it and get something different.
 
Oct 27, 2007
17,009
5
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I guess you are right, the guy didn't HAVE to take the option package. But at the same time, he wanted ONE option and to get it he HAD to take the option package. So in one sense, he really did have to take it.
He valued the one option enough to pay for the whole package. No one forced him to pay for it. What motivation does the dealership have to offer cheap packages when people value the expensive ones enough to pay for them?

Would you take a huge pay cut because the company that employs you think "it sucks" that they pay you as much as they do now? No? Then why should the car dealership agree to make less money because you think "it sucks" that they don't offer cheaper packages?
 

etrigan420

Golden Member
Oct 30, 2007
1,723
1
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You don't have to. If people didn't pay then manufacturers/dealers/service providers would get the picture and not do it. But your bowling friend did pay. What motivation does the dealership have to offer cheaper packages when people are paying for the more expensive ones?

Yup.

The bowler paid for the option and the OP paid for the cable package...

They do it because we as consumers let them do it.
 

JimW1949

Senior member
Mar 22, 2011
244
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0
He valued the one option enough to pay for the whole package. No one forced him to pay for it. What motivation does the dealership have to offer cheap packages when people value the expensive ones enough to pay for them?

Would you take a huge pay cut because the company that employs you think "it sucks" that they pay you as much as they do now? No? Then why should the car dealership agree to make less money because you think "it sucks" that they don't offer cheaper packages?
Dealerships don't set the option packages, the manufacturer does. The dealer just tells you what the different options are available in the different packages. When someone goes to a dealership to buy a brand new car, I doubt the dealership cares if a customer choose one option package, or a different one, or none at all. I am quite certain the dealership would be happy to just sell a new car, even if it is a new car with just the standard equipment. Obviously the dealership would like to sell the most expensive cars they have, but I am sure they will be glad to sell a new car with "no frills" too.

As far as options package costing the consumer less money, that is one thing that I doubt you will even me convince me of. Take the example I mentioned before about the MP3 player. OK, I agree that if you get the MP3 player instead of the CD player as part of the package, then the additional cost for the MP3 player may be $50 more money. If you get the MP3 player instead of the CD player as a "standalone" item, (which I don't think you can do unless the dealership is willing to exchange it after the car arrives from the manufacturer) the MP3 player may cost $200 more. So in that respect, I agree, the package price is a better deal. But if all you want is the MP3 player, paying $200 extra is a whole lot better than paying $750 extra which is what the whole package costs.

But again, this is just my personal opinion and I think it is fundamentally wrong to have to pay for things we don't want just to get the thing we do want.

As far as the last part of your post, I am not sure I understand what you are talking about when you say I have to take a pay cut because the company I work for thinks they are paying me too much. If I am not worth what they are paying me, why did they agree to pay me that much in the first place?
 

etrigan420

Golden Member
Oct 30, 2007
1,723
1
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Exactly! That was my original question. Why do we as consumers let them get away with this crap in some situations, but not in others?

I dunno honestly.

With cars, all the manufacturers do it...and most people will need a car at some point in their lives. Although honestly if I was in your subjects predicament I probably would have saved my money at the dealership and purchased an aftermarket solution of some sort. :shrug:

I *did* finally manage to put my foot down with Comcast though. Cut the T.V. out totally and we just do Netflix, Redbox, and some Vudu every now and again.

If this whole "Net Neutrality" thing goes the way that I *think* it's going to go...we might just have to cut everything and get all "old school" by sending the kids outside to play!..perish the thought. :awe:

Sadly, it's the new "norm". We either need to shift our paradigm or get the offending companies to shift theirs. :hmm: