Buy nothing to save 100%

It is Amazon Prime Day, a sort of Black Friday for those of us with an Amazon Prime membership. A not so elaborate ruse to separate you from your hard-earned money.

Because the item you actually want to buy would never go one sale during Prime Day. That’s not how it works. What do go on sale are things you didn’t even realize you wanted to buy. Take for example the AirPods Pro 2 going for a never before seen low price of $170. This utterly fantastic price creates intense FOMO to hook in customers. Because, what if we never see this price ever again?

Then again, who doesn’t already have a pair? My set of AirPods Pro 2 gets plenty usage on the daily.

In previous economies (as in: not in this economy), I would have bought the AirPods Pro 2 at that rock-bottom price. (True ballers have backup earphones in case their main unit gets lost or craps out.) See how that works? Amazon would have tempted me out of $170 that I had zero plans to spend. People see an item with a tremendous percentage discount, and their minds immediately switch to justifying. I can really use a new Dyson vacuum! Look at how much money I am saving!

Spending money to save money. That’s the essence of Prime Day and Black Friday. Guess what? I saved 100% by not buying anything.

Well, that’s not true. This Prime Day I was able to snag a 50-pound kettlebell for $50. When it comes to gym weights, you want to aim for paying one dollar per pound. I’ve long since progressed from my current 40-pound kettlebell, and have been eyeing a 50-pounder for a few months now. I was not expecting it to be discounted for Prime Day, but I was pleasantly surprised. Well played, Amazon.

View fullsize

New business.

Just keep buying?

What if we simply stopped spending? Let’s vote with our wallets.

With all the price inflation going on, the one thing consumers have control over on the supply-and-demand seesaw is our spending. Prices too high - I don’t like it - therefore I am not buying (looking at you, McDonald’s). If enough of us do that, then the proprietors will have no choice but to lower prices. At least that’s what I was taught in economics 200.

Of course, people are still happily(?) buying. That’s why we have not seen a reduction in prices. The entrepreneur wouldn’t lower them if current pricing is sustainable in terms of customer count. Any savings in production cost should be pocketed as increased profit margin. It’s not greed, it’s math. People aren’t running charities. When high prices actively hurt the bottom line, only then will they go down.

Nearly half of Americans cannot cover a $1,000 emergency, and consumer credit card debt is at record highs. That tells me that lots of people are recklessly spending money well into the red, seemingly undeterred by inflation. Please don’t give me the bullshit about folks being poor and unable to afford necessities - thereby going into debt: my parents made less than $2,000 a month for a household of four for the longest time, and yet they still managed to save money over the years.

Overspending is the problem. During the pandemic, when supply chains were impacted, new vehicle inventories were low. A classic supply and demand problem: low inventory, high transaction prices. Because the American appetite for cars is insatiable. I never got mad at dealer markups, because they exist precisely because someone out there is willing to pay. If absolutely nobody was willing to pay, then the markups wouldn’t exist.

It only takes one. And it only takes consumers continually spending for the current high prices to remain. That’s not going to be me, though. I am hugely price elastic. Printed books have increased in price, so now I begrudgingly buy the digital Kindle version.

View fullsize

I choose you.

Loathing in Las Vegas

The last time I was in Las Vegas was back in 2014. As an adult who seldom drinks and detest going to parties, the little town in Paradise, Nevada never held the same appeal to me as it does to others. A weekend off to Vegas? But why? It’s nothing but a whole mess of people, spending your hard-earned money frivolously, and supremely dry weather (bring lotion).

Well, I just came back from a long weekend in Las Vegas. My friend was attending a conference and had a free hotel bed for me to stay. I figured, why not? It’s been a long time since I’ve been to Vegas; let’s see what it’s like from the perspective of an introvert who is now in his mid thirties.

My priors views about the place are still present. The throngs of people on a Saturday evening on the strip is absolutely amazing and also terrifying, coming out of the pandemic. All I could think about while I was amongst the sea of people is the horrific tragedy in Itaewon, Seoul. If there is a crowd rush right now I will for sure die. The best time to walk the strip is actually a weekday afternoon, during golden hour. Far less people, and the sunsetting colors make the views kind of spectacular.

The frivolous spending of money is what actually grosses me out of the most about Vegas. American consumerism and consumption-ism is on full display. You can’t walk a super long Vegas block without encountering something to lose your money to. Everything there is designed to separate you from your cash, all dressed up in a nice coat of high-class veneer to convince you of your specialness. Las Vegas allows the layman to indulge in a taste of the stereotypical rich lifestyle. Provided you’re willing to fork over some money.

Because the lunch there is definitely not free. The food prices in Vegas are incredibly high, even at the hotel food court level, never mind the branded restaurants behind famous chefs that you’d need reservations for (and a tip to the maître d'). For three days I bought nothing material from any store, only spending on food. I easily dropped $300 on sustenance alone, and that’s without going anywhere fancy. Vegas inflation is real, add on top of that the regular inflation we’re experiencing everywhere.

Las Vegas is indeed a playground for the rich. Normal folks like you and I can only pay what little we have to get a taste. And perhaps get lucky at the tables and games so we can join the ranks of the rich, however minuscule the chance may be. That’s what keeps people coming back, the endless hedonic treadmill.

View fullsize

Old school Vegas.

I bought nothing on Black Friday

A mainstay of Thanksgiving week is the ever popular Black Friday. Remember when we actually had to wait in lines until the clock strikes 12am on the Friday after Thanksgiving? I personally don’t because I’ve an aversion of lines, but nevertheless what used to be an Olympian effort just to score that television for dirt cheap prices (only five available at this price!) is now a leisure stroll through your preferred Internet shopping sites. Heck, most of the discounts were already available before Thanksgiving.

This Black Friday I spent absolutely zero dollars because I’ve implemented intense austerity so to have sufficient funds for an 911 next year. Otherwise I would’ve totally bought that LG OLED television I’ve been eyeing for many years now, plus the just-released new Apple Macbook Air was looking tasty as well. Smart people take the opportunity to do their Christmas shopping during Black Friday, and I’d do that too if not for the fact I simply make personalized photo Calendars to give out to everyone.

In the social media age, Black Friday is not replete without people commentating on the sad state of consumerism and how people are spending money they wouldn’t have otherwise if not for the steep discounts. I saw many tweets to that effect on Black Friday, high-horsed people lamenting the decay of human logic and decency. The few videos of customers physically fighting over a piece of merchandise is always entertaining. Seriously, is it really worth hurting a fellow human being to save a few dollars? Remember: it’s Thanksgiving!

Indeed I don’t doubt that a significant chunk of the population is foolishly induced by Black Friday price-cuts to spend (more) cavalierly. Our United States does have a consumer debt problem after all; it remains too bloody easy to simply put purchases on credit cards and procrastinate the worry of paying to much later (or never: hello bankruptcy!). That said, there’s also another significant chunk of the populace who are financially responsible and leverage Black Friday to buy items they’ve been wanting to at the best possible price. Therefore one shouldn’t use a broad brush to paint the entire consumer base as degenerates of the capitalist system.

Speaking of prices, I do enjoy how Black Friday shines a light on how overpriced items during other times of the year. For example the Google Pixel 3 XL phone that was released only a month ago at $899 can be had at an $200 dollar discount. Anybody buying that phone at full price afterwards ought to feel quite shortchanged.

Overall I think Black Friday is a good time and we all have our idiosyncratic ways to celebrate the occasion. This year I happen to buy nothing but perhaps next year will be different. I’ll certainly be looking at 911-related products for sure.

Rays of fire.