Most people are terrible at pricing an item over its full lifetime. A smaller cash outlay almost always attracts a sale, even if the item has a much shorter expected lifespan than a more expensive alternative, or will require constant repairs, etc. Seeing a low base price on a car, fridge, etc will sway people to buy an item even if there's now a larger operational expense. You're not just powering a device you own anymore but also "unlocking" the Ice Maker Feature(tm) for $5/month.This feels like businesses are trying to force everyone in the debt trap that keeps the poor where they are. Having to pay a monthly subscription for basic functionality isn't _that_ different from being in debt. But instead of floating consumers a loan, these companies are selling an item that selectively breaks if they miss a payment.
wilhil|3 years ago
TeMPOraL|3 years ago
And part of it, I believe, is inflation. I.e. I believe inflation is vastly undercounted and underreported, because a good chunk of it hides in "shrinkflation", decrease of manufacturing quality, lower-quality components, replacing customer service with "AI" chatbots and recently also voicebots, more ads and upsells, and - of course - extra subscriptions tacked on to everything.