When getting a deal isn't worth it

[brig2221]

I came across an article on CNNMoney this morning that I thought was pertinent to this forum and discussion area..

The article is titled, When getting a deal isn't worth it: Spend hours and hours searching for the best price? Maybe you're putting too low a value on your time.

The article's main point is, what is worth our time, and what isn't worth our time, when searching for a better deal, or being frugal.

I read some of the examples in the article, and it got me thinking, how many of us are actually doing this. Literally spending hours of time for a better deal, or driving across town for better deals, when ultimately it may not be worth it given the time it takes.

Article is below, curious what others think of it, as well as your own personal experiences and habits when looking for a deal. How far will you go, how much time will you spend?

When getting a deal isn't worth it - Mar. 6, 2008

[Caoineag]

I don't think I have ever needed more than a couple of hours of research for anything. I have too many things I enjoy doing to waste time on shopping. But then I don't enjoy the hunting for a deal the way other people do (mainly because I hate shopping) so I am probably not the norm here.

[MonkeyMama]

I agree. I put a high value on my time.

That being said, we make our purchases very carefully and with the internet there is a lot of research that can be done in minutes. Likewise, we are generally going to do a fair amount of research on any big purchase, but we aren't going to spend a lot of time on it.

I was just having a discussion about this with my dh though. When we were younger we always made big purchases used. The thing is, we didn't have the money, so we would make the time to find the best deals. Buying used often takes MUCH legwork. Pretty much everything we have bought used has been of high quality and lasted very long. Because we we really put a lot of effort into the process.

We were just talking about how with age and more money, we have gotten kind of lazy. The convenience of buying new wins out most of the time now. But our time has also become much more valuable with age; with increased wages and having a family to raise, etc. Young and single and broke, we put a much lower price tag on our time. So things change in that regard.

[jIM_Ohio]

Time is money, that is how some really obscure occupations stay in business.

Dog Walkers
manicure/pedicure
soccer trainers

and the list goes on

[disneysteve]

Originally Posted by MonkeyMama

We were just talking about how with age and more money, we have gotten kind of lazy. The convenience of buying new wins out most of the time now. But our time has also become much more valuable with age; with increased wages and having a family to raise, etc. Young and single and broke, we put a much lower price tag on our time. So things change in that regard.

I agree completely. DW and I have noticed the same thing. We aren't nearly as frugal as we once were. This is partly due to the fact that we have more disposable income now and can afford to pay a little more for convenience. It is also partly due to having less disposable time. We put a greater value on convenience than we once did.

Originally Posted by jIM_Ohio

Time is money

This is true, but it also depends on what you would otherwise be doing with your time. For example, spending an hour online searching deals to save $5 on a purchase might not seem like a good use of time. But if the alternative would be vegging in front of the tv, saving $5 is probably the better option.

I sometimes see people suggest that if you aren't saving more than your hourly wage at work, it isn't worth it. That only works, IMO, if you would be working instead. If you wouldn't, than some savings can be better than no savings.

[LivingAlmostLarge]

Same here. We used to be really frugal, but a lot of things fall by the wayside when you have limited time.

[Broken Arrow]

Originally Posted by disneysteve

I sometimes see people suggest that if you aren't saving more than your hourly wage at work, it isn't worth it. That only works, IMO, if you would be working instead. If you wouldn't, than some savings can be better than no savings.

I was talking to a friend once about how I'm trying to learn to cook to save money. Being a bachelor as well, my friend countered that eating out is just as cost-effective, because the extra time used for cooking doesn't compare to his hourly wage. I pointed out that unless he was actually working at that time of night, it wasn't a fair comparison. I think he understood, although he still eats out all the time (without really being able to afford it). Now it's because he's too tired when he comes home from work to cook.

[PrincessPerky]

well no one ever pays me to do anything..so I guess I had better spend a LOT of time on deals

On the other hand, no one will pay DH for more than 40ish hours a week...so the rest of the time...he can deal hunt (and he better help me, cause unpaid or no, there is a LOT of work to be done around a house with 3.5 kids!)

On the other hand, driving all around..that uses gas, and gas is expensive. you have to save significant amounts to make it worth the trip (or be there for another reason)

[KellyB]

Hey BA - cook extra and have your friend come over - have him pay YOU instead of the restaurant!

[rob62521]

A book called "The Millionaire Next Door" had an example of two "doctors" who were in the market for a car and told how one had spent weeks researching, calling, and looking, while the other knew what he wanted and what he considered a good vehicle and a decent price, and just faxed the dealers in his area and asked what they had and how much. He spent far less time instead of the many hours and weeks trying to get a good deal. Of course the second guy also knew what he wanted instead of trying to decide and then finding one.

[Snave]

I agree with those that have said that unless you are actually taking time away from a job you could otherwise pay for, then the hourly rate thing doesn't make sense. That is like a billionaire not bending down to pick up a dollar on the street. Technically he spent more money in the time to bend over than he made in picking up the dollar. But, if you aren't working and it is in what would be considered free time, then you just need to decide what amount of savings is worth what amount of convenience.