You Get What You Pay For, Sometimes

How many times have we heard the expression, “You get what you pay for?”  It usually follows a negative experience with a product or service in which you scrimped in an effort to save a few bucks.  But it isn’t always effective to pay more for something in an attempt to get a higher quality.

Frugal people crave value, and are typically willing to pay a slight premium for something that will last.  This means to save money over the long term, frugal shoppers will spend a little more money than cheaper counterparts, but will score products of a higher quality that last longer.  Most people associate frugality with being cheap, but that is not necessarily true.

Cheaper not always lower quality.  When comparing two products many people automatically assume the cheaper alternative is of lower quality.  Not so.  Often times the best value, in terms of bang for your buck, is found somewhere in the middle–not the highest priced product, but not the cheapest, either.

To help demonstrate this idea, Consumer Reports recently developed the Consumer Reports Value Index.  The index I chose for this example shows the relationship between performance and price for rated flat panel televisions, and immediately you can see there are a number of models with low-medium levels of performance, but above average in terms of price.  So in this case, you don’t get what you pay for.

According to the index, the Samsung LN40A550 was the second-best performer in the category, “Best Values in 40″-42″ LCD and Plasma TVs.”  Seven other models cost more than the Samsung LCD, but only one outperformed it in testing.  If you really crave value, and are willing to give up a few performance points, the Panasonic TH-42PX80U did only slight worse in performance testing, but is significantly cheaper.

Aim for the middle. The television example supports what I typically do when shopping, even when I’m not armed with something like the Consumer Reports Value Index.  My strategy is reminiscent of that scene from Rocky IV where Rocky sees three Ivan Dragos (thanks to having his brain scrambled) and his trainer says, “Hit the one in the middle!”

I don’t typically go for the most expensive product, but I don’t automatically buy the cheapest one, either.  The Consumer Reports Value Index supports that strategy, as those products performing above average fell in the middle of the price range.  Both the cheapest and most expensive models fell well below the others in terms of performance, proving that sometimes you don’t get what you pay for.

What’s your general shopping strategy?  Always buy the cheapest option, or aim for the middle of the pack?

Fab Five: Superbowl Sunday Edition

Today is a bitter-sweet day for me.  I love football, and today is the height of the professional football season.  Unfortunately, it is also the end of the season.  Now we must suffer through months of basketball and baseball before the guys return to the gridiron.  I’m always a little sad on the Monday after the Superbowl.

As for the game itself, I am conflicted.  I have always been a Kurt Warner fan, regardless of where he was playing.  Because I am an Auburn fan, I also like to pull for those guys that go on to the NFL.  Arizona has two Auburn alums on their starting defense in Karlos Dansby and Roderick Hood, so naturally I tend to pull for them.  Of course, the Steelers also have an Auburn man on their starting front in Kendall Simmons, but Arizona wins 2-1 in this category.

The conflict is that I am a Steelers fan.  I’m a “throw-back” kind of guy, so I tend to associate with those teams that still run a throw-back style.  No flashy uniforms; no indoor domes to protect them from the elements; no over-hyped “system” style of play.  I like smash-mouth football–in the mud and the cold, the way football was meant to be played.

In this case I’ll be happy with either team winning, and I look forward to a good game.  On paper, the Steelers have the edge, but who knows how things will shake out on the field.  I don’t normally make predictions, but I guess if I were forced into one I’d say:

Arizona: 17
Pittsburgh: 31

What’s your prediction?

The Fab Five

PT Money shares 52 Ways to Make Extra Money.  I think my other blog, Side Hustle Blogging, even snuck in there somewhere.

Mom Advice puts a unique spin on a no-spin challenge–how about a no spend month! I’ve survived weekends, and even a week, but a month?!  At least it is a short month.

Speaking of tracking spending in February, Mrs. Micah has declared it a “where’s my money going month.” A great idea, and an effort I will also take up to better manage where my money is going.  The year got off to a rocky start.

Zen Habits gives us 10 reasons eating raw is healthier.  This really hit home for me as I’ve lost focus on my goals of eating healthier in 2009.  I’ve decided to recommit, starting today, and will make eating more raw fruits and vegetables a top priority.

On the subject of eating healthier, Jeremy from Generation X Finance tells how to prepare a salad to last all week.  Great stuff!  I usually have to toss the bagged salad after only a few days because it turns brown and gets slimy.  I plan to test out this method this week to prepare salads for lunch.

Quick HIts

Lynnae is giving away an iPod Touch for Valentine’s Day! Now that, my friends, is a cool giveaway!  Be sure to check out the link for entry details and deadlines.

My buddy WC from The Writer’s Coin has started a new blog carnival called Comics and Cents.  I don’t know about you, but I could use some comic relief when it comes to finances these days.  Check it out and submit something funny to the next edition.