Psychology and buying high priced gear.

sts9fan · « **on:** 2 Aug 2006, 02:38 pm »

So I know I am crazy but tell me how you would feel in this situation.
Here in MA I drive by a shop that sells B&W, McIntosh and some other high price brands. I have always heard that these brands while good have a large retail markup compared to internet/manufacturer direct. So it seems that the owner of this place is now driving a Ford GT because it is parked out front almost every day. Now I in no way have anything against people making tons of money or driving fancy cars. I am all for capitalism here. Its a weird thing though now that I know this guy can afford a 160k car I most likely would not buy from his shop. Why?? I have no clue. Maybe it makes me believe the markups are too high? I don't see other small business owners that operate out of a shack driving these cars. The human brain is a strange thing.

PhilNYC · « **Reply #1 on:** 2 Aug 2006, 02:44 pm »

If he's operating out of a shack, his overhead is low...

Asides from that, most B&M high end shops these days are making the bulk of their money on home theater installs, and the profits they make on equipment sales are tiny relative to the consulting/contractor fees they charge.

zybar · « **Reply #2 on:** 2 Aug 2006, 02:57 pm »

It is indeed a strange thing...

My buddy has a pizza shop yet he drives a very high end Mercedes. Should I stop buying pizza from him?

How do you know where the money came from to buy the car? How do you know it is even his car?

Even if it came solely from his audio business, why should that bother you or stop you from shopping there? I doubt he is charging more than other B&M places for the lines he carries. If he is succesful, he is obviously charging what the market will bear.

Not shopping there because you don't perceive the same value as when buying used, from online retailers, other dealers, etc... seems quite valid.

Not shopping there because he "potentially" (since you don't even really know for sure) owns an expensive car doesn't make any sense to me.

Do you apply this logic to all business you would possibly transact with? If not, why the bias against the audio dealer?

George

JohnR · « **Reply #3 on:** 2 Aug 2006, 03:07 pm »

Actually, I'm a bit the same as sts9fan... I would wonder if I'm getting good value... I've had this feeling with real estate agents as well for example. All else aside, I feel more inclined to actually talk about the house to the person with the "normal" car than to the one driving the black Merc.

I realize it's not exactly rational, as after all maybe the person is just a good businessperson or investor and more power to them. I guess it's just the ostentatious display of wealth that puts me off.

sts9fan · « **Reply #4 on:** 2 Aug 2006, 03:10 pm »

Quote from: zybar on 2 Aug 2006, 02:57 pm

It is indeed a strange thing...

My buddy has a pizza shop yet he drives a very high end Mercedes. Should I stop buying pizza from him?

How do you know where the money came from to buy the car? How do you know it is even his car?

Even if it came solely from his audio business, why should that bother you or stop you from shopping there? I doubt he is charging more than other B&M places for the lines he carries. If he is succesful, he is obviously charging what the market will bear.

Not shopping there because you don't perceive the same value as when buying used, from online retailers, other dealers, etc... seems quite valid.

Not shopping there because he "potentially" (since you don't even really know for sure) owns an expensive car doesn't make any sense to me.

Do you apply this logic to all business you would possibly transact with? If not, why the bias against the audio dealer?

George

Well thank you for reiterating my thoughts. It was not really an "applied" logic. Its my drive to work and its boring. I noticed the car for a few weeks. Then after a few days I was confused by my feelings and was just analyzing them. Do I have a bias? maybe? That is what I am trying to figure out. Have you ever had a thought that after you pondered it you found it to be illogical?

zybar · « **Reply #5 on:** 2 Aug 2006, 03:13 pm »

Quote from: sts9fan on 2 Aug 2006, 03:10 pm

Have you ever had a thought that after you pondered it you found it to be illogical?

Absolutely!

George

Kevin Haskins · « **Reply #6 on:** 2 Aug 2006, 03:14 pm »

Quote from: JohnR on 2 Aug 2006, 03:07 pm

Actually, I'm a bit the same as sts9fan... I would wonder if I'm getting good value... I've had this feeling with real estate agents as well for example. All else aside, I feel more inclined to actually talk about the house to the person with the "normal" car than to the one driving the black Merc.

I realize it's not exactly rational, as after all maybe the person is just a good businessperson or investor and more power to them. I guess it's just the ostentatious display of wealth that puts me off.

I'm with you. It also makes me thing that they are compensating for something. Maybe that is a bad way of viewing it. It is always easier to judge people without knowing them.

zybar · « **Reply #7 on:** 2 Aug 2006, 03:15 pm »

Buying nice things is compensating for something?

Tough crowd.

George

MaxCast · « **Reply #8 on:** 2 Aug 2006, 03:17 pm »

Nice new car = rich, making too much money.
Old car = poor quality, shotty work.

It's true, it happened to me.

I guess we all should drive a Camry to releve this stress in out brain.

sts9fan · « **Reply #9 on:** 2 Aug 2006, 03:19 pm »

I think this came off bad. i am more analyzing myself then the ower of the car. I thought I would post it here because it happen to be a highend store. I have heard though that real estate brokers and sales people tend to not get TOO fancy cars due to this reason.

MaxCast · « **Reply #10 on:** 2 Aug 2006, 03:21 pm »

I also find it funny how people talk about thier rich boss/company (driving/living where ever). I then ask them, "what? you rather work for a poor bastard?"

Kevin Haskins · « **Reply #11 on:** 2 Aug 2006, 03:21 pm »

Quote from: zybar on 2 Aug 2006, 03:15 pm

Buying nice things is compensating for something?

Tough crowd.

George

No... buying something that screams "LOOK AT ME" is usually the indicator.

I'm not totally serious either.... my best friend drives a $100K Jag. Of course he is compensating for having me as a friend.

AB · « **Reply #12 on:** 2 Aug 2006, 03:22 pm »

My thoughts...

It seems to me the $160k car is likely not the result of the "successful" audio business. It seems to me the $160k car AND the audio biz are both the results of some other successful venture.

I have some expensive toys too. The most expensive one of all is my business.

Kevin Haskins · « **Reply #13 on:** 2 Aug 2006, 03:25 pm »

Quote from: MaxCast on 2 Aug 2006, 03:17 pm

Nice new car = rich, making too much money.
Old car = poor quality, shotty work.

It's true, it happened to me.

I guess we all should drive a Camry to releve this stress in out brain.

I drive on old pickup truck and a scooter. I hope that doesn't say anything about the quality of my work.

zybar · « **Reply #14 on:** 2 Aug 2006, 03:27 pm »

Quote from: sts9fan on 2 Aug 2006, 03:19 pm

I think this came off bad. i am more analyzing myself then the ower of the car. I thought I would post it here because it happen to be a highend store. I have heard though that real estate brokers and sales people tend to not get TOO fancy cars due to this reason.

It's a cool thread - nothing came off bad.

We all have our own biases and viewpoints.

George

PhilNYC · « **Reply #15 on:** 2 Aug 2006, 03:41 pm »

Quote from: sts9fan on 2 Aug 2006, 03:19 pm

I have heard though that real estate brokers and sales people tend to not get TOO fancy cars due to this reason.

I think it depends on the level of client the real estate broker is going for. If a broker is selling multi-million-dollar homes, chances are s/he's going to wear designer clothes and drive an expensive car, because his/her clients are going to want to know that the broker understands/appreciates the level of refinement/quality they are looking for. In addition, the "small talk", like "How do you like your Porsche? I was thinking of getting one" also helps. On the other hand, a broker selling houses on the cheaper end of the spectrum is going to need to convince his/her clients that s/he is interested in finding value for them...

This is probably the same for audio...someone looking to drop $100K on a home theater installation probably feels more comfortable working with someone who appears to be "at home" with luxury goods...

PhilNYC · « **Reply #16 on:** 2 Aug 2006, 03:42 pm »

Quote from: AB on 2 Aug 2006, 03:22 pm

It seems to me the $160k car is likely not the result of the "successful" audio business. It seems to me the $160k car AND the audio biz are both the results of some other successful venture.

Too true...

Doublej · « **Reply #17 on:** 2 Aug 2006, 03:46 pm »

From this logic you should be a Falmouth Commodores fan not a Red Sox fan. Do you think any of the players or owners of the Red Sox drive moderately priced cars or live in generic houses?

Perhaps the man inherited his money or lives in a shack to be able to afford the GT or has no kids or is just a darn good businessman. No matter it's all about comfort. If you don't like the car he drives or don't like the look of the store, or don't like the brands he sells or don't like the prices he charges go somewhere else.

That's the beauty of America...

sts9fan · « **Reply #18 on:** 2 Aug 2006, 03:50 pm »

obviously you did not read the thread.

JoshK · « **Reply #19 on:** 2 Aug 2006, 03:55 pm »

If we all (humans) applied this sort of logic, Vegas wouldn't exist.