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I think that the bigger issue is that corporations have figured out that people don't know how to multiply and are willing to pay far more money as periodic pay
by cameldrv 7y ago
I think that the bigger issue is that corporations have figured out that people don't know how to multiply and are willing to pay far more money as periodic payments than they are as a one time expense.
On this water filter thing, the fridge costs about $1500. Suppose it lasts 10 years, and you replace the $55 water filter every six months. That's $1100 worth of water filters! The water filters almost double the cost of the fridge!
Profit-wise, on a $1500 fridge, it's a competitive market. You're looking at multiple brands, so GE probably has a profit of $100 at most on the fridge. On the water filters though, we know that the generic one sells for $19 and the branded one is $55. That suggests that GE probably makes a profit of at least $20 on the filter. Over the life of the fridge, that's $400 in profit -- 80% of the profit of the fridge is in the filters! If third parties are threatening that profit by making knockoffs, of course GE is going to take countermeasures to protect 80% of their profit.
- Nextgrid 7y agoI don't think it's the bigger issue. Even in the water filter scenario, let's assume everyone has this fridge and is regularly buying filters. They had temporary growth in revenue but now that everyone has fridges + filters it's mostly stable again. Do you think they'll stop there? The unsustainable idea we have of running a business would suggest they should be doing something else to even further increase the profits.
- LgWoodenBadger 7y agoIt's not just a "name brand costs more!!!" situation. The name-brand GE filters (for the type I used to buy) eliminate/reduce lead, chlorine, plus "5 trace pharmaceuticals" and 15 other contaminants. The bargain bin filters (HDX, in this scenario) only eliminate/reduce lead, chlorine, "tastes and odors." GE - https://www.homedepot.com/p/GE-Genuine-MWF-Water-Filter-for-GE-Refrigerators-MWF/204635201 https://www.homedepot.com/p/GE-Genuine-MWF-Water-Filter-for-... HDX - https://www.homedepot.com/p/HDX-Water-Filter-for-GE-Refrigerators-2-Pack-HDX2PKDS0/206621305 https://www.homedepot.com/p/HDX-Water-Filter-for-GE-Refriger...
- cameldrv 7y agoIt looks to me like both of them are an activated carbon filter. They're going to filter the same things.
- michaelmrose 7y agoWhich of those contaminants are a actually in your water?
- notyourday 7y agoYou do realize that in most of the cases name brand is store brand are made by the same companies on the same lines and the customers are paying for the label which you know due to marketing?
- LgWoodenBadger 7y agoI literally just said that was not the case in this scenario and I provided evidence why. If you can demonstrate that the store brand filters are the same, despite not advertising the ability to filter the same chemicals and pharmaceuticals then sure, you win. My point was that the “name-brand costs more for no reason” is not always true. FFS
- notyourday 7y agoIt is probably an identical filter made by the same factory with a different description written by different people because different agencies were involved. I have no interest in buying and disassembling the filters to compare them but since they are both charcoal filters they are the same. If they were not, then one of them would be advertised as a charcoal filter and the other one would be advertised as a charcoal filter + some other filter.