Ninety Days!

The beauty of economics is when you can find the true value of consumer goods.  If one is able to determine the worth of what they are buying, it then becomes possible to control and beat the established economic system (to a degree).  In some instances it is in the interest of the consumer to pay more.  A perfect example is food; farmer's markets with a selection of fresh, often organic produce do come at a premium, but the possible gains in longevity and health make the 5-30% premium cost negligible.  To contrast, it is almost always best to buy things like clothing, fashion items, and shoes at the lowest possible price point, filtering for quality and perhaps preference.  It can take years of careful observation, or a simple following of the instincts to determine the strengths and weaknesses in a particular market.  One very quickly learns how and where the groundwork for finding value exists.

There is no crueler and more accurate market than the grey market.  I would argue that second hand stores, consignment stores, goodwill and online sites such as ebay, kijiji, and craigslists will quickly shatter any illusions as to the value of a particular item.  I found a pair of verifiable sequins Uggs with no wear to the soles or wool for $10 at Goodwill this week, last season's must haves for $140.  Before you discard this as a fluke, or shudder at the ick factor of used shoes, think about our cleaning options available for killing bacteria; boiling water, a very hot wash, sun bleaching, or some time in a sealed bag in the freezer are simple ways of sterilizing used clothing items. 

Second-hand economics is not without a caveat, a "buyer beware" so to speak.  When using these markets, extensive and exhaustive research is necessary to protect oneself from used merchandise that has lived out its usefulness and is on its last legs of life.  In my Ugg's example, I  knew to learn how to identify counterfeits.  When shopping for  a second hand stroller on kijiji, I researched the top 3 reviewed strollers, waited for a low priced ad, scooped it up, tested it, and proceeded to resell on kijiji for a small profit (thus enabling me to progressively learn what qualities I needed in a good stroller, as well as what the true value of said item was.  I bought and resold 6 strollers before finding the perfect solution, and adequately profiting on good timing).

Clearly one risks overpurchasing when exposed to these unusual, wonderful side markets.  ;)

Please consider the retail life cycle as well.  With the important exception of specialty handcrafted goods, the malls of North America follow a new stuff price - newish stuff discount - clear it out discount - no REALLY let's get rid of this because we have new stuff coming bottom-of-the-barrel pricing strategy.  The best sizes are usually quickly bought, as are the most popular versions of classic items.  Ask yourself, honestly though; was it worth it to spend $35 on a teapot in your preferred color vs. the $5 at the end of the season in a honey bee yellow?  How much value do you place on that particular preference?  Can you function just as happily with the same teapot in a different color?

My exception of specialty handcrafted goods is important; these small cottage industries usually fail, but when they do not, they get the premiums they ask for because they produce something that cannot otherwise be replicated. 

That is enough for tonight.  And I was worried I had nothing to say ;)