3 ms·

Luxury vs. premium

9 points by peter123 17y ago

jerryji 17y ago
"I can afford to spend money without regard for intrinsic value." What is the precise definition of an "intrinsic value"? What if the "intrinsic value" consists mainly perceive value, i.e., the value of I-feel-good -- does a $50,000 jewelry have more "intrinsic value" than a $5,000 custom-made suit?
- stcredzero 17y ago
  What is "intrinsic?" What is "value?" Value seems to be pretty contextual. The relative value of a letter written by Leonardo Da Vinci and a used life preserver change in the middle of a flood. One can see this as intrinsic value asserting itself over perceived value. (In your example, the $5000 suit may find itself much more valuable than the $50,000 baubles if the city has been destroyed by a flood, it's very chilly, and the suit happens to be made out of wool.) My sister has a saying: Unless someone is going to lose a life, or lose a limb, it's really no big deal! Intrinsic value has its basis in our experience of living. It is based on biological needs and our psychological makeup as determined by the particulars of how our minds happen to work. All the other value is an elaboration on this. Also note, that psychologically based needs are also highly contextual. There's also no clean demarcation between physical and psychological needs.
  - jkmcf 17y ago
    IIRC, (it's been a few years), this might help Seth and others: http://www.amazon.com/Zen-Art-Motorcycle-Maintenance-Inquiry/dp/0061673730/ref=ed_oe_p http://www.amazon.com/Zen-Art-Motorcycle-Maintenance-Inquiry... Otherwise, you might just go crazy! Personally, when I want to buy something, I always try to purchase the best available I can afford. By afford, I mean something with credit I can pay off without worrying too much. This was mainly learned from my buy and sell routine with guitars. If I had just purchased that PRS right off the bat, I could have saved a lot of money :) By best, I mean based on ratings and features important to me.
    - stcredzero 17y ago
      I was thinking of posting another link to that book, but I had just done so recently in another thread. Another interesting idea: Barry Schwartz's _The Paradox of Choice_ http://www.ted.com/index.php/talks/lang/eng/barry_schwartz_on_the_paradox_of_choice.html http://www.ted.com/index.php/talks/lang/eng/barry_schwartz_o... Sometimes trying to maximize is more trouble than it's worth. "Satisficing" is a good way to economize. Save your maximizing behavior (and thus your mental resources) for the choices that matter the most.
brc 17y ago
I don't think this is always clear-cut. Sometimes premium goods have a certain amount of luxury in them to justify the purchase price. A good example is a Mercedes. In most countries, even the base model Mercedes has a high standard level of trim, and luxury features. Yet, in Germany, you can still purchase that vehicle with plain trim and denuded of lots of the luxury features. Most of the taxis are like this. The base German model can be considered a 'premium' product, because it has a higher level of engineering, safety and build quality than other vehicles, but doesn't have the luxury baubles which people like to have to justify the higher purchase price.

9 points by peter123 17y ago

"I can afford to spend money without regard for intrinsic value." What is the precise definition of an "intrinsic value"? What if the "intrinsic value" consists mainly perceive value, i.e., the value of I-feel-good -- does a $50,000 jewelry have more "intrinsic value" than a $5,000 custom-made suit?

stcredzero 17y ago
What is "intrinsic?" What is "value?" Value seems to be pretty contextual. The relative value of a letter written by Leonardo Da Vinci and a used life preserver change in the middle of a flood. One can see this as intrinsic value asserting itself over perceived value. (In your example, the $5000 suit may find itself much more valuable than the $50,000 baubles if the city has been destroyed by a flood, it's very chilly, and the suit happens to be made out of wool.) My sister has a saying: Unless someone is going to lose a life, or lose a limb, it's really no big deal! Intrinsic value has its basis in our experience of living. It is based on biological needs and our psychological makeup as determined by the particulars of how our minds happen to work. All the other value is an elaboration on this. Also note, that psychologically based needs are also highly contextual. There's also no clean demarcation between physical and psychological needs.
- jkmcf 17y ago
  IIRC, (it's been a few years), this might help Seth and others: http://www.amazon.com/Zen-Art-Motorcycle-Maintenance-Inquiry/dp/0061673730/ref=ed_oe_p http://www.amazon.com/Zen-Art-Motorcycle-Maintenance-Inquiry... Otherwise, you might just go crazy! Personally, when I want to buy something, I always try to purchase the best available I can afford. By afford, I mean something with credit I can pay off without worrying too much. This was mainly learned from my buy and sell routine with guitars. If I had just purchased that PRS right off the bat, I could have saved a lot of money :) By best, I mean based on ratings and features important to me.
  - stcredzero 17y ago
    I was thinking of posting another link to that book, but I had just done so recently in another thread. Another interesting idea: Barry Schwartz's _The Paradox of Choice_ http://www.ted.com/index.php/talks/lang/eng/barry_schwartz_on_the_paradox_of_choice.html http://www.ted.com/index.php/talks/lang/eng/barry_schwartz_o... Sometimes trying to maximize is more trouble than it's worth. "Satisficing" is a good way to economize. Save your maximizing behavior (and thus your mental resources) for the choices that matter the most.

brc 17y ago

I don't think this is always clear-cut. Sometimes premium goods have a certain amount of luxury in them to justify the purchase price. A good example is a Mercedes. In most countries, even the base model Mercedes has a high standard level of trim, and luxury features. Yet, in Germany, you can still purchase that vehicle with plain trim and denuded of lots of the luxury features. Most of the taxis are like this. The base German model can be considered a 'premium' product, because it has a higher level of engineering, safety and build quality than other vehicles, but doesn't have the luxury baubles which people like to have to justify the higher purchase price.