Never use monthly payment amount to compare prices

[orev]

At the end of the day, wtf is $150? I know for some people it’s a lot but cmon. And who the **** looks at just the monthly payment and not realize it adds up every time you pay monthly. If you don’t, you’re one dumb morherfudger.

Literally everyone on this forum talking about how it's not that big of a difference in monthly payment.

 

[rawlus]

it is not necessarily a case of the stupid getting duped as your entire thread seems

Seeing a lot of this here, and Tim Cook even brought it up as a reason the X is so expensive and that people should just focus on the monthly price instead of the total. It's the standard car salesman trick: "Focus on the monthly payments and it's only a few bucks more, see! No big deal!"

People here are saying to just buy the 256GB because it's not that much more. Wrong! The price of the 256GB is 15% more than the 64GB. That's a very large percentage difference for something that might not make any difference to you. Apple Care+ is another %20 of the cost. In total if you go for both of these then you're paying 35% more for the phone. That's huge!

Always look at the total cost of something to make the decision if it's worth it for you. That money will be out of your pocket either way, so don't fool yourself by thinking it's only a small difference in monthly payments. Decide if the value is worth it for you BASED ON THE TOTAL PRICE, not the monthly payment!

as others have said. 15% more base price for 4x more storage space. the extra 20%for apple care is, for IUP customers,there regardless of model and not deleteable...for those who are not mandated to get it, they would either get it regardless of model or not get it regardless of model. they are not going to make a go/no-go decision on applecare based on the memory size they bought.

so the price differential in real world is a small percent of the total cost, whether factored by monthly payment or by total base price all-in.
[doublepost=1509077005][/doublepost]it is literally a cup coffee and a bagel’s difference in cost per month for about a year or so. why is this even a thing?

 

[bueller1]

[doublepost=1509076583][/doublepost]

That is NOT what I'm talking about! The entire point here is that a salesperson will gladly get away with telling you that something is only "$8 more" and that sounds a lot better than if they tell you it's "$150 more". That's it. The only point being made here. End of discussion.



I did not once bring up interest or other charges. You can use the car salesman analogy on different car models that have different prices and that has nothing to do with interest of finance charges. "on a device that costs either $999 or $1149." WHICH IS A 15% DIFFERENCE WHICH IS NOT A SMALL AMOUNT!

Lol dude the entire point here is that your damn comparison makes sense in pretty much 99% of the case that you're being sold something in the form of monthly payments for the simple fact that interest and fees are involved.

HOWEVER, this is unique in that you don't typically get the convenience of a "loan" without paying for it.

 

[orev]

Final and and only point I ever tried to make, before I drop this thread, which is exactly what I said in the first post:

Decide if the value is worth it for you BASED ON THE TOTAL PRICE, not the monthly payment!

Decide if the value is worth it for you BASED ON THE TOTAL PRICE, not the monthly payment!

Decide if the value is worth it for you BASED ON THE TOTAL PRICE, not the monthly payment!

Decide if the value is worth it for you BASED ON THE TOTAL PRICE, not the monthly payment!

Decide if the value is worth it for you BASED ON THE TOTAL PRICE, not the monthly payment!

Decide if the value is worth it for you BASED ON THE TOTAL PRICE, not the monthly payment!

 

[Hoosier317]

[doublepost=1509076583][/doublepost]
I did not once bring up interest or other charges. You can use the car salesman analogy on different car models that have different prices and that has nothing to do with interest of finance charges. "on a device that costs either $999 or $1149." WHICH IS A 15% DIFFERENCE WHICH IS NOT A SMALL AMOUNT!

You seem to have some anger issues.

It's $150. If that is not a small amount to you, perhaps you should go for the iPhone SE.

 

[rawlus]

[doublepost=1509076583][/doublepost]

That is NOT what I'm talking about! The entire point here is that a salesperson will gladly get away with telling you that something is only "$8 more" and that sounds a lot better than if they tell you it's "$150 more". That's it. The only point being made here. End of discussion.



I did not once bring up interest or other charges. You can use the car salesman analogy on different car models that have different prices and that has nothing to do with interest of finance charges. "on a device that costs either $999 or $1149." WHICH IS A 15% DIFFERENCE WHICH IS NOT A SMALL AMOUNT!

why do you get to define what s small amount is and is not for everyone dude? if $150 more is too much for you to justify for storage you don’t personally need, then don’t get the big one. you need to relax a bit. they make the different sizes so we have choices. there is no right and wrong choice dude. you seem to be insistent there is a right choice and anyone who is choosing the large is making a wrong choice because it’s $150 more and “that’s not a small amount” by YOUR standards.

 

[santaliqueur]

It doesn't matter that there's no interest on the loan, that's not the point

It's not the point, until you bring up shady car salesman and inadvertently combine their tactics with your point.

Why is is so difficult to have any kind of discussion anywhere without people intentionally misreading and misinterpreting what one says?

Being vague about your arguments'll do that to ya.

 

[mcdj]

If macrumors had a motto, it would be “Do yourself a favor and don’t do us any favors.”

 

[Applejuiced]

Well said.
People tend to just think about the monthly payment price, others even go as far as breaking it down by day so the monthly payment divided by 30 to justify it to themselves.
Its a known trick to get you to forget how much its really going to cost and have you think of a low monthly payment.
The way Apple keeps going with jacking up prices they might not even mention the actual price, they'll just throw something like $55 a month interest free 😀

 

[rawlus]

people are free to decide what they can afford in a monthly budget for what they are getting, or they can decide based in the all-in total price based on their circumstances.

the concept of monthly payments is not new - most people already have several bills they pay on a monthly basis, they are accustomed to doing the seth in their head to say figure, gosh, i spend $1000/year in cable and internet!

it doesn’t matter if you’re talking months or years or total cost.... the price differential between the two models would not be considered objectively as a rip-off by modern standards... so i suspect most end up choosing mostly by what they want or what they can afford, not by “might as well spend $150 more” for no reason whatsoever

 

[Hoosier317]

Well said.
People tend to just think about the monthly payment price, others even go as far as breaking it down by day so the monthly payment divided by 30 to justify it to themselves.
Its a known trick to get you to forget how much its really going to cost and have you think of a low monthly payment.
The way Apple keeps going with jacking up prices they might not even mention the actual price, they'll just throw something like $55 a month interest free 😀

It's $150. No trick there.

 

[Applejuiced]

It's $150. No trick there.

True, no matter how you split it its still $150 more in the end.
When its put as just 21 cents a day or $6.25 more per month is more of a mind trick to get you not to think of the full actual price.

 

[gabo864]

Y’all need to chill! It’s not your money so it’s not affecting you, if you’re not buying the iPhone X cuz it’s too expensive or for whatever other reason, it doesn’t matter to others. Let’s just relax people! Y’all won’t change anybody’s mind!

 

[bueller1]

lol seriously. it's $150. the total is never hidden. pretty sure it sits right next to the monthly price. this "trick" has been around well before an iPhone X lol. Laptops being financed since the freakin 90s + interest. Now we're complaining that a company offers a larger audience the ability to pay for something over an extended period that they otherwise would have probably charged on their credit card with 29.9%

 

[rawlus]

Well said.
People tend to just think about the monthly payment price, others even go as far as breaking it down by day so the monthly payment divided by 30 to justify it to themselves.
Its a known trick to get you to forget how much its really going to cost and have you think of a low monthly payment.
The way Apple keeps going with jacking up prices they might not even mention the actual price, they'll just throw something like $55 a month interest free 😀

wtf. if i rationalize that this phone is going to cost me about the same as a cheap coffee a day (roughly $1.40/day), but it lasts a long longer than a coffee and does a lot more than a coffee and ill enjoy it a lot more than a coffee then what’s wrong with that? it’s not a trick being played... justification in ones mind is not a terminal fault in reasoning, it is a central function of logic... rationalization is not a bad thing so not sure why everyone is attempting to demonize it.

$150 extra for the big one is $0.20/day. 20cents over two years. a child could budget for this thing if they put their mind to it.

you might as well post that when the company lists the price as $999 it’s really just about $1000, less don’t be fooled by this trick people! the x99trick is designed to DECIEVE YOU and make you think the item is less expensive than it really is... i mean. no durr?

 

[Applejuiced]

Now we're complaining that a company offers a larger audience the ability to pay for something over an extended period that they otherwise would have probably charged on their credit card with 29.9%

Now you're just making false assumptions.

 

[bueller1]

Now you're just making false assumptions.

how so? lets pivot and discuss how you think there are people out there that are not intelligent enough to calculate what the hypothetical $55 monthly payment would be costing them if the total was not shown.

 

[Applejuiced]

wtf. if i rationalize that this phone is going to cost me about the same as a cheap coffee a day (roughly $1.40/day), but it lasts a long longer than a coffee and does a lot more than a coffee and ill enjoy it a lot more than a coffee then what’s wrong with that? it’s not a trick being played... justification in ones mind is not a terminal fault in reasoning, it is a central function of logic... rationalization is not a bad thing so not sure why everyone is attempting to demonize it.

$150 extra for the big one is $0.20/day. 20cents over two years. a child could budget for this thing if they put their mind to it.

you might as well post that when the company lists the price as $999 it’s really just about $1000, less don’t be fooled by this trick people! the x99trick is designed to DECIEVE YOU and make you think the item is less expensive than it really is... i mean. no durr?

Exactly what you said at the end.
When they're pricing something at $999 instead of a grand that makes it feel like a better deal. Its a proven marketing trick just like splitting the actual price to many smaller payments and make it sound way better. Like car salesman they want to get your mind of that you're actually paying $42K for a car and just talk about the monthly payment.
If you want to think of it as about a coffee a day to justify it for your self then go for it. But those every day coffees for 2 years add up to the actual price of what you're paying at the end😉
[doublepost=1509079132][/doublepost]

how so? lets pivot and discuss how you think there are people out there that are not intelligent enough to calculate what the hypothetical $55 monthly payment would be costing them if the total was not shown.

Its not about not being intelligent enough or being smart or stupid.
Just proven sales marketing strategies used over centuries.
Psychological pricing is part of marketing based on the theory that certain prices have a psychological impact. Retail prices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or £2.98. There's evidence that consumers tend to perceive “odd prices” as being significantly lower than they actually are, tending to round to the next lowest monetary unit. Thus, prices such as $1.99 are associated with spending $1 rather than $2. The theory that drives this is that lower pricing such as this institutes greater demand than if consumers were perfectly rational. Psychological pricing is one cause of price points.
Same thing with the monthly payment marketing technique over the actual full price😉

 

[rawlus]

i think it’s less of a trick than a tradition at this point.... i’m personally not fooled by $399 thinking it is anything less than $400. in fact, when i see that, i instinctively and intuitively “round up” to the “real”dollar amount.

i think there’s some case the OP is trying to make that rationalizing it by monthly cost is “and rationalizing it by how much it costs you at the end is “right” this is the flawed premise. there is no right or wrong. when the price is exactly the same either way, then there is not better deal one way or the other.

it’s like when a mom says her baby is 8 months old. seems fine. but if she says her baby is 42 months old you’re like what? 3.5 years you mean?

 

[Applejuiced]

i think it’s less of a trick than a tradition at this point.... i’m personally not fooled by $399 thinking it is anything less than $400. in fact, when i see that, i instinctively and intuitively “round up” to the “real”dollar amount.

i think there’s some case the OP is trying to make that rationalizing it by monthly cost is “and rationalizing it by how much it costs you at the end is “right” this is the flawed premise. there is no right or wrong. when the price is exactly the same either way, then there is not better deal one way or the other.

it’s like when a mom says her baby is 8 months old. seems fine. but if she says her baby is 42 months old you’re like what? 3.5 years you mean?

Yes, but when someone asks you hey Rawlus how much is that that shiny cool new phone you got?
Do you say not much bro, its only $42 a month or about a coffee a day?
The actual price of it is $999 😉
The rest is marketing and not really what one would answer.
Like how much did that car cost you? You dont say about $350 a month for 6 years, minus my old Nissan that I traded in and $3000 in cash that I put down. You say the car price was $32,000.

 

[bueller1]

Exactly what you said at the end.
When they're pricing something at $999 instead of a grand that makes it feel like a better deal. Its a proven marketing trick just like splitting the actual price to many smaller payments and make it sound way better. Like car salesman they want to get your mind of that you're actually paying $42K for a car and just talk about the monthly payment.
If you want to think of it as about a coffee a day to justify it for your self then go for it. But those every day coffees for 2 years add up to the actual price of what you're paying at the end😉
[doublepost=1509079132][/doublepost]

Its not about not being intelligent enough or being smart or stupid.
Just proven sales marketing strategies used over centuries.
Psychological pricing is part of marketing based on the theory that certain prices have a psychological impact. Retail prices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or £2.98. There's evidence that consumers tend to perceive “odd prices” as being significantly lower than they actually are, tending to round to the next lowest monetary unit. Thus, prices such as $1.99 are associated with spending $1 rather than $2. The theory that drives this is that lower pricing such as this institutes greater demand than if consumers were perfectly rational. Psychological pricing is one cause of price points.
Same thing with the monthly payment marketing technique over the actual full price😉

lol. the thing about odd pricing is that we don't tend to round to the next lowest monetary unit. we are doing a combo of two things: one of which is sub consciously ignoring the cents. which is why you typically see 19.99 with .99 in much smaller writing. another is establish a reference price and because we typically round UP when establishing that reference price, the idea of something costing less is enticing. because of how we perceive loss as more significant than gain. 😉
[doublepost=1509080161][/doublepost]

Yes, but when someone asks you hey Rawlus how much is that that shiny cool new phone you got?
Do you say not much bro, its only $42 a month or about a coffee a day?
The actual price of it is $999 😉
The rest is marketing and not really what one would answer.
Like how much did that car cost you? You dont say about $350 a month for 6 years, minus my old Nissan that I traded in and $3000 in cash that I put down. You say the car price was $32,000.

Exactly my point. Even though you're paying $350 a month for 6 years you knwo that overall you signed up for a $32,000 purchase.

 

[Applejuiced]

lol. the thing about odd pricing is that we don't tend to round to the next lowest monetary unit. we are doing a combo of two things: one of which is sub consciously ignoring the cents. which is why you typically see 19.99 with .99 in much smaller writing. another is establish a reference price and because we typically round UP when establishing that reference price, the idea of something costing less is enticing. because of how we perceive loss as more significant than gain. 😉

Yep, exactly what you said.
1 with the 99 in small font size usually about half the size of the number 1 in front of it.😀
Those are proven sales and marketing facts with tons of research and studies proving you can present things a certain way to maximize the sales effectiveness 😉
Same thing as showing the monthly price instead of the full retail price and many many other techniques that are proven to work over time.

 

[rawlus]

what Bueller said, but i don’t like to talk about what i paid for things with others because that’s crass i might say it was a lot of it took a lot of saving, but how much i make and spend on things is not anyone else’s business and can lead to bad feelings with others when shared.

bit bueller made the post we all should gphave - regardless of how you choose to pay for anything, you typically have a clear idea of what it costs. this myth that because your only paying monthly you don’t pay attention to total cost doesn’t ring true to me or anyone i know. maybe because i work hard for what money i have so i treat purcjses with a leave of respect and consideration.

i could see it being a different scenario where you’re a kid who is not paying for it yourself, out of your own pocket, with money you earned via working... then you might make the mistake of thinking $50/month =cheap

 

[bueller1]

Yep, exactly what you said.
1 with the 99 in small font size usually about half the size of the number 1 in front of it.😀
Those are proven sales and marketing facts with tons of research and studies proving you can present things a certain way to maximize the sales effectiveness 😉
Same thing as showing the monthly price instead of the full retail price and many many other techniques that are proven to work over time.

yes except they've never hidden retail prices and i think it's safe to say they won't. they don't have to. like i said there are a lot of people out there who find it easier to pay 40 bucks a month than dish out 800 on an iPhone 8. I can make the same argument and ask why you didn't pay for that car in cash.

 

[Applejuiced]

regardless of how you choose to pay for anything, you typically have a clear idea of what it costs. this myth that because your only paying monthly you don’t pay attention to total cost doesn’t ring true to me or anyone i know.

That's not a myth at all.
Its a sales and marketing strategy that works very well with many many people.
Maybe not particularly with you or me neither but you gotta admit many many people fall for it😉