Saturday 15 February 2020

IS CHEAP ACTUALLY CHEAP?



The Paradox

Real life paradoxes could be interesting and debilitating at the same time.

Calling someone cheap is derogatory but companies, products and services notwithstanding, leave no stone unturned to, boost sales, increase turnover and book profits going cheap. Governments by statute, do everything to make sure they take the least cost. Substantiated claims are commensurately rewarded. These rewards are so addictive and intoxicating that people become blind to costs of going cheap while managements choose to remain oblivious to long-term damages, short-term advantages bring home. It fuels institutionalised proliferation of short-lived products ignoring long term costs of maintenance, down time and replacements. While burgeoning short-lived inventory demand lesser ‘immediate’ fiscal outgo for consumers and set cash counters ringing for sellers, such short-sighted profiteering steadily inflicts long-term pecuniary penalties on us individuals and irrevocable environmental damages on the human kind. The society, smug in the misplaced belief of technological advances feigns sleep, oblivious to this paradoxical coexistence of profits and profit-triggered losses. 

Rugged Longevity or Fragile Technology

There were times, when one brought a product and it went on and on and on. When it went kaput, it would promptly be repaired and reused, re-re-repaired and re-reused. There were also people who could precisely detect causes for failures and knew exactly how to put it right back into service. Many such products saw and served few generations. Brand loyalty transcended generations. Those were yesteryear stories of  stuff repaired and reused.

Nowadays, most products pack up either before expiry of warranty or definitely shortly thereafter. To add insult to injury, the technical support wizard who attends to the complaint for a consideration called ‘service charge’ is often clueless. After inspection of the equipment, often a charade, promptly declares it ‘Beyond Economical Repairs’. Some of them even attempt to convince the customer how lucky it is to have the machine go kaput since it is the right time to grab a technologically superior replacement at an unbelievably benevolent price with an enticing buy-back scheme.

Comparisons between a rugged archaic refrigerator that refuses to give up despite an abusive existence and an elitist state-of-the-art double door intelligent convertible fridge that refuses to serve a day after warranty expires, sums up the prevailing situation. Deference to technological advances and miniaturization notwithstanding, longevity of many a new age product stands suspect. Whether the fragility is by design or not is a question that must trouble society, intensely now.

Bitter Yet Better?

Some products, especially white goods, marketed and sold as state-of-the-art are particularly notorious for failures immediately after expiry of warranty. Discussions, confidentiality assured, with managers up the chain give an impression that companies could be eyeing higher volumes through replacement sales. ‘More Bitter - The Better’ seems to be the underlying marketing philosophy. A consumer can be motivated, on some pretext or the other, to part with his money on a technologically better piece of the same brand as replacement for the defective piece. Zero interest financing and attractive buy-back clauses function well as enticing baits. Fortunately for the market, for every discerning customer opting out of the brand there are hundreds with more disposable incomes being added every day to the market, readily led up the garden path by glib talking sales executives.

Credibility a Non-issue?

While cost of servicing pre-warranty expiry failures might have been catered for by the company, there is little chance for incessant pecuniary bleeds inflicted upon consumers by post warranty failures to receive any consideration. On the contrary, unmindful of the compounding cost of credibility-loss, for some post-warranty service is bait, hook and revenue. Unfaithful and ill prepared staff at the contact edge aggravate loss of credibility through greed and lack of professionalism. After one or more incidents of living with an untrustworthy brand, clients tend to shun the entire range of products of the brand. Ignorant of the fact that longevity sustained by quality and affordability ensure brand immortality, smooth talking salesmen garner and fuel sales peddling ailing products amongst the gullible new. There is no dearth of poor products, gullible customers and glib talkers. It may serve brands well if they remind themselves of the potential informal adverse referrals, right or wrong, have in obliterating the brand itself from the market.

Unseen Costs

Unseen, unspoken about, yet not considered alarming but the most afflicting by-product of poor quality and cheap production is the burden environment has to bear for the huge inventory produced, warehoused, discarded, dumped and non-recycled. To make production profitable, volumes are required. To improve profits yet more volumes at even cheaper input costs are required. To move huge volumes of new inventory, more demand should be generated. High rate of failures repairs and replacement is required to fuel higher demand. Then greed kicks in. This destructive combination necessitates brutal invasions into nature’s belly across the globe. Environmental degradation thrive on such mindless, greed fuelled activities.

Junkyards have mushroomed over cities and towns all over the world. Often created at the periphery of settlements, they invade inwards, thrive within and overwhelm. Maximum discards are necessitated not due to products outliving life promised but because they are abandoned as ‘beyond-economical-repairs’. Concept of repairs have made way for replacement. With poor uptake for recycling, a large pool of material resources is wasted and left to pollute nature. The burden and impact of pollutants leaching out of these colossal dump yards have neither been fully documented nor recognised. While the world is busy buying and discarding, we tend to forget that the pace of discard is also pace of environmental pollution.

Not only individuals but even the society has to collectively bear the cost of poor-quality. It is in the interest of the society and its longevity that products manufactured, marketed and sold have life long enough to reduce burden of waste. Else we may  be racing to choke ourselves in plentiful refuse?

18 comments:

  1. A good and realistic article.

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  2. Greed of the era, in fashion you call it KickOffs

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  3. Thought provoking write up

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  4. Poor quality can be disastrous in certain areas like medical care. Rajagopal

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  5. Excellent article pointing to one of the important important truths of the current era to be addressed

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  6. True to the core. Actual facts brought out. Venkatesh

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  7. The blog details the burden of low cost products on consumers, sellers, and the planet at large. It will take persistent reminders and follow ups by humanists to get the message across to all stake holders to highlight need for producing robust long-life products even if it is at a higher cost if we want to leave a better planet for the future.

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  8. Thought provoking indeed, keep enlightening.......

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  9. Very thought provoking and well written. Due to barage of ads, the gullible public ends up purchasing cheaper, low quality goods that have short functional life. Its time people demand value for their money.

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  10. The article highlights the problems related to people falling for the "cheap" and well marketed products which lack the longevity or durability and hence add to the waste dump yards.While I agree to most of it, what I feel is not going to give any respite to the situation about the new and modern technology driven products constantly replacing the old ones, is the mindset of the new generation which wants constant change. So for the present generation the sturdy classic furniture of his grandfather is definitely a work of art but he would still want to have the latest, the market has to offer. So while we do know the hazards of these low cost products, which lack durability or sustainability people would still "willingly" fall into the trap. This explains even the modern day construction of flats too, which are hollow quite literally, but when put on display as the beautiful, well furnished sample flats people quite easily end up investing in them. While value for money will always be a consumer's prime concern the constant urge to see, feel and experience change is fortunately or unfortunately the trend now, if not among all but most of the millennial generation.
    Hope your article does appeal to the hearts of the impulsive buyers and aid as an eye opener.

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  11. Why would someone like to buy the latest iPhoneor Merc, when the original handsets and Ambys did the same job, more or less. Economy is market driven, population is always on the rise and needs are shortlived, only to be replaced by fresh ones. Old is gold no doubt, but even gold is for the lockers, flaunted only for a show. So let the show go on, let the moolah keep the smiles going. Even human lifespans have reduced, so are we cheaper than before?

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  12. Quality & cheap rate never match. You displayed the point verywell. Besides. Cmoney loss you discoverd the relationship between cheap appliances & environmental problems. Sure this is a topic to be discussed by people of nature consideration

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  13. Very well written Friend. Keep it going.
    The problem with the present day cheap consumer product industry is not only that they are made for short term life but also the fact that after sales service is at its lowest ebb. Its a combination of ill trained staff that attend to our complaints coupled with the fact that almost all major companies do not handle complaints directly any more but through outsourced service partners who are contracted at very low rates. The margins in such a business model are very low and training is non existent the training. There is hence no incentive to provide good service.
    I must narrate an experience that I went through with a major consumer good company. A few years back, I picked up an expensive dishwasher which we thought was the final solution for the tardy services of our domestic.
    The machine arrived, the installation and demo were done and presto the machine started working. The joy was not long lived. In exactly a fortnight the dishwasher detergent refused to eject and there started this story.
    Repeated complaints and very often threats of FIRs and violence got us a beeline of visitors ranging from the lowly technician to the doctorate holder in that product. Try as they did, the detergent refused to eject. To me it looked and seemed a rather lowly problem. A timer controlled spring mechanism that popped open on a command from some software or hard ware hidden some where in the system. Every thing from the PCB to the MCB to software to hardware was handled and mishandled but alas we were where we started.
    My calls finally ended up at the desk of someone who was next to God Almighty in the company and one morning, I got a call saying that they were replacing the machine for me and it continues to work ever since. This is the case with most new age gadgets.
    Call centers, lack of training, poor products designed for short life are all complicating the problem.
    Like you say, many of these products finally land up in junk yards where we have no facility for recycling. The more such products we procure, the more the packing material particularly thermocol that piles up. I do not see much light at the end of the tunnel to recycling and reuse to say the least and not much attention is going into all this.
    The only thing that works with clockwork precision and with uncontrolled zeal is the effort that these companies put in to sell AMCs where again the service is far far away from satisfactory but where a captured clientele is assured.
    Like the old style family doctor who are now almost extinct, gone are the days of the friendly street corner repairman who had a solution for even the most complicated problems. These instant solutions came more from experience and from easy to handle products and technology.

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  14. Good Evening sir, Really a very useful article even unknown to the poor public,or not sparing time to understand the undue profits and unrealistic charges levied on the consumers. Whatever be the tricks, the common man is exploited without his knowledge. The poor people can never afford such levying of hidden charges whereas there are people who ignore such additional expenses by virtue of their economical sound background. It is an eye opener to many people and a valuable article. Thanks.

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  15. Replies
    1. The concept of use and throw etched into the mind of people who lose more than they throw end up causing a huge dent in society highlighted. Good one.

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    2. This comment has been removed by the author.

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