“I Bought It On Sale” = I’m Probably An Idiot

Allow us the indulgence of quoting ourselves, since there are so few other personal finance bloggers worth repeating the words of. The man in this story sued Target because the store claimed that the $150 worth of luggage they sold him was discounted from $300, when in fact it was discounted from some smaller amount. In California, that gives you standing:

Hinojos is the philosophical descendant of every idiot housewife who came home with an overpriced and/or unnecessary handful of shopping bags.

“How much did that cost?”
“I got it on sale!”

That’s not an answer. Things cost what they cost, not the reduction by which they were discounted. 

Stating a discount is the least nuanced trick in the book, but it works. That’s why it’s lasted so long. It’s the equivalent of pretending to throw a ball while your dog turns around and chases nothing, except dogs don’t know any better and humans are supposed to be the masters of this dopey planet. Which of these 2 signs do you think will entice more customers?

 

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The one on the left will, because people are incorrigibly stupid.

Years ago, “I got it on sale” might even have been an acceptable defense, only because there was no universal standard, no platinum-iridium bar of comparison. This Curtis Mathis TV costs $1500, and the salesman at my friendly neighborhood Gottschalk’s store says that’s a $500 saving? Sounds good to me, I guess. What do I know?

People, it’s, as our grandmothers enjoy calling it, the Internet Age. You’re no longer at the mercy of an opportunistic merchant or a prevaricating advertising department to find out whether you’re indeed paying too much for your set of lawn chairs or set of lawn darts. Here’s a quote from some woman with a ridiculous job title (“retail strategist”) that makes us yearn for the day when almost everyone was employed in agriculture:

“The deal is not so special anymore,” says Alison Jatlow Levy, a retail strategist at consulting firm Kurt Salmon. “The deal has become the norm. And if the deal is the norm … it actually just trains the consumer to never buy at full price.”

Okay, that served the purpose of giving the USA Today writer a source for future use. But what does it mean? Taken on its face, it means “deals” and “sales” are irrelevant. But do you know what metric does matter when you’re trying to determine the price of something? Here, we’ll give you a hint. Put your PRedICtivE powers to use and try and glean what it might be.

Price, and price only. Once again, layers of sophistry administered over the years have turned a simple truth into something complicated that needs to be unearthed, rinsed off and decoded. Even then, plenty of people still won’t get it.

So how do you determine the appropriate price of something, if you can’t rely on retailers’ capricious figures? EBay. The auction site is more than just a place to get rid of your miscellany. It’s a valuable tool in its capacity as the definitive price list for just about anything.

Here’s Cuddles My Giggly Monkey, a toy that indulging parents are giving their kids this Christmas:

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It costs $85 at Hasbro’s own site. It’s unavailable on FAO Schwarz. $65 on Toys “Я” Us’s site. $75 on Target’s site, but good luck getting one by December 24. Those prices give some indication of how much you should pay, but not enough of one. There’s still the matter of availability. The Target price sounds tempting, but the toy appears to be out of stock at every location we could find.

Onto eBay. We didn’t think this required direction, but here goes. Once you’ve entered the name of what you want to buy,

  1. Look at the Buy It Now prices only.
  2. Look at the auction prices, ranked by time ending soonest.
  3. Ignore the ones without any bids.
  4. Buy accordingly.

As of now, eBay has 102 Cuddleses for sale, 90 of them available for immediate purchase. Among those, the best price we could find was $85, including shipping.

There are 2 dozen Cuddleses available via auction, so the total isn’t 102, but hey, it’s eBay. They used to have a female CEO, so math isn’t their strong suit. Of the dolls available via auction, the one ending soonest (11 hours as of now) has 7 bids, the last of those $61.

It’s important to mention that most of the remaining dolls available for auction haven’t been bid on yet. That means you should ignore their listed prices. Why? Because those “prices” aren’t prices at all. They’re just dreams held by the sellers. It’s like when the media reports that tickets to the Democratic National Convention or gold iPhone 5Ss are going for $20,000 or whatever, just because one deluded seller on eBay insisted that bids start at that wildly inflated and unrealistic price. No one’s going to buy a late-model Xbox for $20,000, and no one’s going to buy Cuddles My Giggly Monkey for $125. No matter how badly the eBay seller who wants that much kicks and yells.

As the end of the auction approaches, the bids increase and the prices increase asymptotically. A lot can happen to that $61 high bid in the remaining 11 hours, and we’d be willing to bet that the high bid will surpass $65 long before then.

So buy from Toys “Я” Us and be confident you made the right decision. Should someone else offer the same toy for $70 and bill it as “30% off!”, you’ll know what to do and how disdainfully to treat that “deal.”

 

Thanks to Paula Pant at Afford Anything for indirectly inspiring this post. Unlike us, she hasn’t yet run out of ideas, nor resorted to modifying other people’s.

Trent Hamm, Genius. Trent Hamm, Lunatic

Who's the most handsomest boy at the board game convention?

Who’s the most handsomest boy at the board game convention?

 

See? He’s not the only one who can change his mind by 180º in a single motion. And honestly, he is something of a genius in that someone this, what’s a good euphemism – single-minded can attract tens of thousands of devotees despite having only one personal finance tactic at his disposal (“spend less.”)

If you’re unfamiliar, Mr. Hamm is the “creative” force behind The Simple Dollar, an amateurishly written website in which he repeats himself 14 times weekly. He’s been a favorite of ours for a very long time. His advice is insipid, his syntax more stilted than Roy Maloy. From Mr. Hamm’s latest post, here’s an example of the excruciating detail he entices his readers with:

The first morning we were [at a relative’s house for Thanksgiving], I grabbed some clothes and headed for the bathroom to take a shower. Just like I do at home, I turned the hot water to full and turned on the cold water just a little bit, waited about fifteen seconds, and stepped in.

No mention on which body part he used to turn the water on with, whether he closed the shower curtain behind him, or if soap was involved, and if you think we’re being funny you haven’t seen the depraved depths of specificity to which he’ll go. The shower turned out to be too hot for his soft white underbelly, so…you won’t believe what he did to address the problem. Any guesses? Come on, you can do this.

I turned down the hot water and turned the cold water up quite a bit until I found a good balance

This is how you become a great blogger, kids. Write things your audience can identify with. Who among us hasn’t gotten in an unfamiliar shower and found it too hot? More importantly, who among us has found it noteworthy to mention such an occurrence?

Afterwards, I was talking to the person who was hosting us

Trent goes to disturbing lengths to camouflage the identities of the bit players in his inexorable stories. Earlier, he refers to this home as that of “some of our extended family members.” Because “my wife’s uncle” or whatever just conveys way too much information.

Anyhow, the person who was hosting the Hamm clan (or, if you prefer concision, the “host”)

told me that he, too, turns on a mix of hot and cold water for his shower, as does his wife.

This isn’t an atypical post for Trent Hamm. Every one of them is this dull, pointless, and dizzyingly simple in its progression. If you were visiting kin and discovered that they drank beer with breakfast, dried their clothes in the oven, or tossed their trash in the neighbor’s yard, that would be worth mentioning. But that they “tur[n] on a mix of hot and cold water for [their] shower[s]”? You know, like everyone else in the civilized world does? To you, our readers, this is as pleonastic as information gets. To us, it’s something to make fun of. But to Trent, it’s critical to the plot.

[Finding out that these people shower with a mix of hot and cold water] threw me for a loop.

I was…shocked.

We only wish that Trent’s shocked-by-the-shower story had involved someone throwing a toaster in standing water while Trent was scrubbing down his orcine body, but no such luck.

We’re not going to parse every line in Trent’s Typhoon Haiyan of a post, because if we did we’d be here for months. Fast-forwarding, the unidentified male family member explained that they keep their water heater temperature high to prevent disease.

Where do these people live, Calcutta?

The good part, at least for Trent, is that this conversation gave him another triviality to obsess over.

At about 50 degrees Celsius, which is what we keep our hot water heater set to, you have a drastically higher chance of Legionella living in your hot water tank. Instead, [The Canadian Journal of Infectious Diseases] recommends keeping it set at 60 degrees

God forbid he’d multiply the Celsius values by 1.8 and add 32 to accommodate his American audience, but Trent has a knack for paying attention to meaningless details only. Although he’d probably never given Legionella a 2nd thought in his life, he was now confronted with a whole new series of economic tradeoffs to calculate cost-benefit analyses for:

The problem with that temperature is that you run into some danger of scalding. The solution there is to have anti-scald devices at the faucets and showers

[…]I raised our own tank temperature up to about 140 F. We already had these anti-scald devices installed

So, does Trent’s post have a point? Of course not, this is Trent Hamm we’re talking about. By the way, the cheapest anti-scald device we could find sells for $42. Trent Hamm, who regularly tells his readers to save money by making their own toothpaste instead of dropping $1 for a tube of AquaFresh, and who literally counts the number of times he shakes salt or pepper onto his food, threw away $42 on an additional shower valve instead of just playing with the hot and cold faucets like a normal person would. The net result of Trent raising his water tank’s temperature to unfamiliar heights? Again, by now you should be able to guess this easily.

The water in the shower…does come out warmer than I like, meaning I mix in some cold water with my showers.

Every 12 hours, this psychopath manages to hunker down and squeeze out another post. Which sounds like it’d be hard to do, at least in terms of time expended, until you remember that he can burn multiple paragraphs on the subject of his preferred method for finding a comfortable temperature each time he steps into the shower (which, judging by his appearance on those YouTube videos, isn’t all that frequently.)

There is a plot twist. About once every couple of hundred posts, Trent goes iconoclast and stops praying at the altar of the great goddess Parsimonia (boldfacing his):

Frugality isn’t worth the risk of a significant increase in the likelihood of Legionnaire’s disease or other bacteria-borne illnesses in our home.

Again, what 3rd-world backwater is he living in? Last we checked, Huxley, Iowa was nowhere near the Gaza Strip. Granted, he lives with kids and kids are filthy, but so filthy that even 120º isn’t enough to stop the microorganisms from claiming another victim? The only people Legionnaire’s disease has killed in this country in the last 30 years all lived in nursing homes. Trent isn’t yet so immobile that he needs a health-care worker to wash him down with a rag on a stick, but you can’t be too careful.

This advice wouldn’t be so bad (though it’d still be plenty bad) if it weren’t coming from the same tool who bars the door against Legionella but goes out of his way to recommend other fun ways for incurring disease:

If your recipe says “Preheat the oven to 400º” and then later says “Bake for 30 minutes,” don’t preheat the oven at all. Instead, put your food in the oven, then set the temperature to 400º. Then, add about half of the preheat time to the cooking time. Why? When you open a preheated oven to put in your dish, it’s no different than opening the oven to check the food near the end of the cooking time. You lose that 2¢. (Ed. note: 2¢ being the amount Trent figured out that it costs to open your oven to check on food. That’s not a joke. Nor is it a joke that he apparently had no clue than turning on an oven light could have saved him 1.994¢ or so of those precious pennies.) 

Keep your shower’s hot water relatively cool to save money. No wait, raise its temperature so you don’t get an extremely rare disease. But it’s okay to risk a more common (if less fatal) disease if it means saving 2¢, or .05% of the price of an unnecessary anti-scald device.

Trent Hamm is an abomination. If you read him for anything other than the (admittedly small) amusement value, you’re throwing your life away. If you’re contemplating buying his book, please buy ours instead before killing yourself.