2.12.2009

Exposing a Stupid Marketing Concept: Money Saved Isn't Money Earned

Everytime I hear an ad on the radio that talks about discounts and marked down prices they seem to invoke a failed concept as an added incentive to try and get you to buy. They invoke the idea that, because you've saved money from them, you have this big wad of cash leftover that you get to keep.

The reason this is as failed concept is because there is no pile of money that equals the full price of the item to begin with. People either buy it on credit (and lose the benefit of the discounted price in finance fees) or they save their money and wait for a sale to afford it. At least that's what I do, I can't really speak for anyone else.

The same thing applies to the Cash Back deals that car dealers advertise. You aren't going to get a car and a big wad of hundred dollars bills. You'll get a car and some of the price knocked off the top (though the dealer will still make a hefty chunk of change on the transaction).

Money saved isn't money earned and a discount doesn't equal more money in your pocket, it just equals less money taken out. Trying to convince me otherwise smacks of economic jiggery.
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