xirazoo (8:56:34 PM): i got my refund from jcrew
tedtwong (8:56:56 PM): good. stop buying and returning stuff... you'll drive up the prices for the rest of us :-)
xirazoo (8:57:24 PM): like you care
tedtwong (8:57:33 PM): I do... as an economist.
xirazoo (8:57:38 PM): and i can't always decide on things
xirazoo (8:57:46 PM): at least i can return stuff if i don't want it
tedtwong (8:58:28 PM): yeah, but that diverts the cost of processing to the stuff they actually sell, which will raise the price of things that you eventually decide to buy.
xirazoo (8:58:50 PM): how?
tedtwong (9:00:20 PM): think about the retailer as a system. they buy clothes and sell them. If you raise their cost of doing business (by having them spend time and energy processing returns), that cost has to be offset by the money the get from sales. To raise the revenue, they have to raise prices.
xirazoo (9:00:43 PM): oh
tedtwong (9:01:32 PM): I just came up with this... but pretty interesting way to persuade you to stop buying stuff, huh?
Comments (2)
Teddy!!!
Long time, no see, hear or read any good freestyle econ-theory, especially anything from MC Wong ... far, far too long. I just wanted to say hi and tell you that I really admire how the website has come along. Keep up the great work and thought-provoking entries; I will definitely return soon for your latest takes on the micro/macroeconomic forces that shape our lives.
Whenever you find time, please drop me an e-mail update on your current state of affairs.
Until then ... take care!
Posted by Dave | September 24, 2003 9:26 PM
Posted on September 24, 2003 21:26
didn't know you were serious about posting that part of the conversation... you did come up with some good b.s., but do you really think it'll change my buying habits?!
Posted by lisa | September 25, 2003 5:50 AM
Posted on September 25, 2003 05:50