Saturday, March 24, 2012

Discounts! Hurry!

And people hurry. Chance to save money on good stuff. They like a lot of stuff. Buy a lot of stuff. But after buying, they've to use. Usage depends on habits. And changing habits is tough, no? For example, just because I have a lot of shirts doesn't quite mean that I am going to change shirts any more often than I do now.

So if discounts tempted me into buying more and if the rate of usage stays the same, a thing would serve me for a longer time. And since these days even perfectly 'good quality' products are also available on sale, they are likely to serve longer. To that extent my next purchases are pushed further in future.

This conclusion might not hold of course if my rate of discarding increases. But then, even that is a matter of habit. I suppose, Indians yet haven't cultivated that disposition of disposing things off any time sooner than they used to in earlier times.

Since the purchases are pushed further in future and brands continue to products on the expanded assembly lines, the likely result would be offer more discounts to lure the customers again.

In the shorter run, customers find value in buying quantities (coz of discounts), but since rate of usage changes rather slowly, there is a great likelihood that a lot of stuff goes waste or becomes outdated. A little common sense would bring them back to buying normal quantities, with or without discounts.

Brands' problems persist.