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3.53 AVERAGE
3.53 AVERAGE
informative
medium-paced
This is a nonfiction book about our (especially Americans') drives toward bargains driving down living and working standards for the global marketplace. It made me more closely evaluate whether I truly need to purchase something if I want to buy it cheaply, though I'm not certain I would've been swayed if I hadn't started out distrustful of big box retailers. Enlightened self-interest is a nice concept, but too many have day-to-day struggles that make these arguments easy to ignore. I suppose that's the major point of the book, but the author is writing to the wrong audience, then.
The first chapter of the book discusses the rise of discount retailers, and what purchases looked like before their inception. Ellen Ruppel Shell ties in bulk purchasing, Henry Ford and his five dollars a week for workers, low wages and high turnover, manufacturing standards, unions, and current big box stores. It reads as an infodump, and the history's salience doesn't emerge until the last few chapters. It was better than assuming I knew all of that and plowing ahead, but its presentation in a great big, contextless chunk took away from its importance.
Later chapters are devoted to outlets, the advent of the shopping mall, Ikea, cheap food, and Chinese manufacturing.
Shell ends on a hopeful note, discussing what stores like Wegmans and Costco are doing to reverse the damage of the other discount retailers. But she doesn't propose how to push the other stores toward their business model, or how to even the playing field. Our only solution, apparently, is to vote with our wallets. And, if there's no Wegmans or Costco near you, well, too bad. She doesn't discuss the small, locally owned business much, nor does she point us to nonprofits or political organizations.
It's books like this one that have contributed to the climate that bore the Occupy Wall Street movement, and that's lending it credence. It's just too bad the book seems to assume it'll go away if enough people know about it.
I listened to this book on audio, narrated by Lorna Raver. Her narration was clear, and sometimes even impassioned. She had a few verbal oddities that made the frequency of the word "price" annoying, and she sounds like a smoker, but, overall, her narration didn't detract from the book.
The first chapter of the book discusses the rise of discount retailers, and what purchases looked like before their inception. Ellen Ruppel Shell ties in bulk purchasing, Henry Ford and his five dollars a week for workers, low wages and high turnover, manufacturing standards, unions, and current big box stores. It reads as an infodump, and the history's salience doesn't emerge until the last few chapters. It was better than assuming I knew all of that and plowing ahead, but its presentation in a great big, contextless chunk took away from its importance.
Later chapters are devoted to outlets, the advent of the shopping mall, Ikea, cheap food, and Chinese manufacturing.
Shell ends on a hopeful note, discussing what stores like Wegmans and Costco are doing to reverse the damage of the other discount retailers. But she doesn't propose how to push the other stores toward their business model, or how to even the playing field. Our only solution, apparently, is to vote with our wallets. And, if there's no Wegmans or Costco near you, well, too bad. She doesn't discuss the small, locally owned business much, nor does she point us to nonprofits or political organizations.
It's books like this one that have contributed to the climate that bore the Occupy Wall Street movement, and that's lending it credence. It's just too bad the book seems to assume it'll go away if enough people know about it.
I listened to this book on audio, narrated by Lorna Raver. Her narration was clear, and sometimes even impassioned. She had a few verbal oddities that made the frequency of the word "price" annoying, and she sounds like a smoker, but, overall, her narration didn't detract from the book.
please see my review in advertising age:
http://adage.com/bookstore/post?article_id=139847
also visit: http://the-agency-review.com/cheap
http://adage.com/bookstore/post?article_id=139847
also visit: http://the-agency-review.com/cheap
This book delved more into history and psychology than others I have read on the topic.
I wanted to read a nonfiction book this week, so I picked this out of my wishlist and set to it. I found the information and commentary more compelling than I expected, even having read other books on similar topics, and went through the book in just two days.
The American-led obsession with "Cheap" has had a huge impact on the world, including economic, social, and environmental effects throughout the globe. What began as searching for a good deal with value has devolved into buying the cheapest thing possible, regardless of whether it will fulfill its nominal purpose. Bargains have not become "best value for the price" but rather "getting more for less," which is an unsustainable concept that is rapidly coming to a head as resources and labor markets around the world are finally reaching the breaking point.
The author covers several examples, from the beginnings of discount store culture (hello Woolworths) and the rise of discount stores and outlet malls through how technological breakthroughs have made once luxury items into cheap trashy commodities (shrimp). I've been thinking about what I purchase more and more over the past few years, tending to buy less from big box stores and more from smaller retailers and crafters, but there is so much more that can be done. However, finding out the true provenance of your purchases, whether food, clothing, or household good, can be very tricky. Sure, it's easy for me to go to the farmer's market and get beef from a local farmer I see every month, but how do I find a pair of jeans that were sourced ethically? And if I can find those jeans, how do I know what a truly fair price for them would be? I have no idea, and no good way to figure it out - should it be double the price of the $75 jeans I'm wearing today? Triple? Should they then last twice as long? Without clear information on these sorts of topics, it's nearly impossible to make an informed decision on what to buy and how to buy it, and that combined with the wage stagnation rampant today means that most people just aren't able to even think about these choices let alone afford them.
There's a lot of good information in this book, and while I agree the introduction and buildup to current times was a little long it covers a lot of ground and I found it quite interesting. I'm definitely going to be thinking even more carefully about my purchases in the future, especially of the more durable goods like clothing and furniture, in hopes of finding quality and avoiding Cheap. I recommend everyone read this book - even if you don't have the ability to change everything you buy right away, even being aware of what the things you buy cost beyond the price tag is important.
The American-led obsession with "Cheap" has had a huge impact on the world, including economic, social, and environmental effects throughout the globe. What began as searching for a good deal with value has devolved into buying the cheapest thing possible, regardless of whether it will fulfill its nominal purpose. Bargains have not become "best value for the price" but rather "getting more for less," which is an unsustainable concept that is rapidly coming to a head as resources and labor markets around the world are finally reaching the breaking point.
The author covers several examples, from the beginnings of discount store culture (hello Woolworths) and the rise of discount stores and outlet malls through how technological breakthroughs have made once luxury items into cheap trashy commodities (shrimp). I've been thinking about what I purchase more and more over the past few years, tending to buy less from big box stores and more from smaller retailers and crafters, but there is so much more that can be done. However, finding out the true provenance of your purchases, whether food, clothing, or household good, can be very tricky. Sure, it's easy for me to go to the farmer's market and get beef from a local farmer I see every month, but how do I find a pair of jeans that were sourced ethically? And if I can find those jeans, how do I know what a truly fair price for them would be? I have no idea, and no good way to figure it out - should it be double the price of the $75 jeans I'm wearing today? Triple? Should they then last twice as long? Without clear information on these sorts of topics, it's nearly impossible to make an informed decision on what to buy and how to buy it, and that combined with the wage stagnation rampant today means that most people just aren't able to even think about these choices let alone afford them.
There's a lot of good information in this book, and while I agree the introduction and buildup to current times was a little long it covers a lot of ground and I found it quite interesting. I'm definitely going to be thinking even more carefully about my purchases in the future, especially of the more durable goods like clothing and furniture, in hopes of finding quality and avoiding Cheap. I recommend everyone read this book - even if you don't have the ability to change everything you buy right away, even being aware of what the things you buy cost beyond the price tag is important.
I didn't feel compelled to finish this. It was interesting, but she spent 10 pages or so quoting extensively from Dan Ariely, with whom I just took a six-week class, so I didn't feel that I was learning anything new. Mostly this was a recap of several of my classes from business school. And what you think is reduced cost, normal goods at an outlet store? Most likely it was actually made for the outlet store of cheaper, inferior material, giving the manufacturer and company a much higher margin (GAP, Banana, JCrew, Coach, Ralph Lauren are but some of the major offenders).
Wow, this book made me feel bad about the fact that I was reading it while reclining in my IKEA bed. Though others have pointed to problems in copyediting, overall the author does a really good job of examining the shifts in culture that have led to our current "cheap is better" mentality.
There were a lot of good things about this book, but one of the things that stood out was her mention of social justice conflicts that exist in relation to cheap/discount culture. This was discussed particularly in context of local eating, and was treated as a systemic problem - that only the middle and upper classes can really afford to eat in the ways that nutritionists and food advocates recommend. This is not directly the fault of the farmers who charge too much at the markets, or of the consumers who are able to make these lifestyle choices - it's endemic in a system where the government subsidizes certain crops, which are then used to feed animals kept in lousy conditions, which are then processed into a burger that costs less than a green pepper at an urban farmers market. This makes NO SENSE AT ALL, but it makes a lot more sense in the context of the consumer/producer culture presented in this book.
Seriously, read it.
There were a lot of good things about this book, but one of the things that stood out was her mention of social justice conflicts that exist in relation to cheap/discount culture. This was discussed particularly in context of local eating, and was treated as a systemic problem - that only the middle and upper classes can really afford to eat in the ways that nutritionists and food advocates recommend. This is not directly the fault of the farmers who charge too much at the markets, or of the consumers who are able to make these lifestyle choices - it's endemic in a system where the government subsidizes certain crops, which are then used to feed animals kept in lousy conditions, which are then processed into a burger that costs less than a green pepper at an urban farmers market. This makes NO SENSE AT ALL, but it makes a lot more sense in the context of the consumer/producer culture presented in this book.
Seriously, read it.
A really interesting, insightful read that explores the negative effects cheap goods and discount stores has on us individually as a whole economy.
Markdowns were particularly interesting - nowadays, these costs are often passed back to the manufacturer who lose it from their bottom line. Historically, though, the store would eat the cost of discounting merchandise and chalk it up to poor purchasing decisions/merchandising, missing on a trend, etc. In 1955 the dollar value of total markdowns as a percentage of dept. store sales was 5.2%. It grew to 6.1% in 1965, 8.9% in 1975, and 18% in 1984. No more recent data was included, but I imagine - and the author insinuates - that's continued to climb. This stifles innovation and the manufacturer/designer level, if capital needs to be set aside to cover a retailers sale/discounting decisions down the road. Due to the concentration in the retail industry - and especially apparel - they (retailers) can use their considerable heft to force compliance. It's also forced many smaller, independent suppliers out of the market. To understand how prevalen the problem has become, consider that in the mid-1990s, only 20% of department store merchandise sold at full price. And that in 2001, the dollar percentage of marked-down goods across all sectors was 33%.
There was an eye-opening chaper on IKEA that argues that the cheap quality leads to environmental waste and the following quote from an MIT-trained urban development expert: "IKEA is the least sustainable retailer on the planet". There was an alarming chapter on food and an enlightening discussion of outlet malls. Ruppel Shell (a journalist for "The Atlantic" did her homework and wrote a fact-filled account of America's obsession with cheap and discounts; she explored the dark underbelly of these industries and reminds readers that yes, you get what you pay for most times. Even if you're not paying in cash and even if it's not right now, it's too good to be true. Being a frugal person myself, this has given me a lot to think about. I think we all know this deep down, but the author drags the issue to the light to force the conversation. A great read that I'd recommend to non-fiction lovers.
And now, a few of my fave factoids from the book:
- Mr. Woolworth, of the former Woolworth empire, had his office in the Woolwort building in lower Manhattean, then the tallest building in the world. His office was an exact replica of Napoleon's office at Compiegne. But where Napoleon settled for wood, Woolworth demanded marble.
- Sylvan Goldman introduced the concept of the shopping cart in 1937 to allow shoppers to browse more leisurely instead of heading to the checkout when their arms were full. Initially, customers at his Humpty Dumpty supermarket chain in OKC weren't impressed - men found the device effeminiate and women found them insulting as they were very similar to baby carriages. Goldman hired "burly men and attractive women" to roll the shopping carts around his stores, acting as customers. Obviously, it worked.
- Price has an impact on the brain. In one interesting study, one group of subjects was given a painkiller at full price while the second group was offered the same painkiller, but at a 25% discount. The second group experienced a less powerful effect on the brain and researchers concluded that "cheap price seemed to reduce the secretion of opioids in the brain".
- In 1993, the top 5 retail organizations held 48% of the apparel market and by 2000, the top 10 retail chains sold 72% of American clothing.
- Imported goods are more likely than domestic goods to be marked down, due chielfly to the lead times required and longer shipping times.
- Rebate redemption rates are estimated at 5 - 10%.
- Each year, more than 200M copies of the IKEA catalog are distributed. This is more than the Bible.
Markdowns were particularly interesting - nowadays, these costs are often passed back to the manufacturer who lose it from their bottom line. Historically, though, the store would eat the cost of discounting merchandise and chalk it up to poor purchasing decisions/merchandising, missing on a trend, etc. In 1955 the dollar value of total markdowns as a percentage of dept. store sales was 5.2%. It grew to 6.1% in 1965, 8.9% in 1975, and 18% in 1984. No more recent data was included, but I imagine - and the author insinuates - that's continued to climb. This stifles innovation and the manufacturer/designer level, if capital needs to be set aside to cover a retailers sale/discounting decisions down the road. Due to the concentration in the retail industry - and especially apparel - they (retailers) can use their considerable heft to force compliance. It's also forced many smaller, independent suppliers out of the market. To understand how prevalen the problem has become, consider that in the mid-1990s, only 20% of department store merchandise sold at full price. And that in 2001, the dollar percentage of marked-down goods across all sectors was 33%.
There was an eye-opening chaper on IKEA that argues that the cheap quality leads to environmental waste and the following quote from an MIT-trained urban development expert: "IKEA is the least sustainable retailer on the planet". There was an alarming chapter on food and an enlightening discussion of outlet malls. Ruppel Shell (a journalist for "The Atlantic" did her homework and wrote a fact-filled account of America's obsession with cheap and discounts; she explored the dark underbelly of these industries and reminds readers that yes, you get what you pay for most times. Even if you're not paying in cash and even if it's not right now, it's too good to be true. Being a frugal person myself, this has given me a lot to think about. I think we all know this deep down, but the author drags the issue to the light to force the conversation. A great read that I'd recommend to non-fiction lovers.
And now, a few of my fave factoids from the book:
- Mr. Woolworth, of the former Woolworth empire, had his office in the Woolwort building in lower Manhattean, then the tallest building in the world. His office was an exact replica of Napoleon's office at Compiegne. But where Napoleon settled for wood, Woolworth demanded marble.
- Sylvan Goldman introduced the concept of the shopping cart in 1937 to allow shoppers to browse more leisurely instead of heading to the checkout when their arms were full. Initially, customers at his Humpty Dumpty supermarket chain in OKC weren't impressed - men found the device effeminiate and women found them insulting as they were very similar to baby carriages. Goldman hired "burly men and attractive women" to roll the shopping carts around his stores, acting as customers. Obviously, it worked.
- Price has an impact on the brain. In one interesting study, one group of subjects was given a painkiller at full price while the second group was offered the same painkiller, but at a 25% discount. The second group experienced a less powerful effect on the brain and researchers concluded that "cheap price seemed to reduce the secretion of opioids in the brain".
- In 1993, the top 5 retail organizations held 48% of the apparel market and by 2000, the top 10 retail chains sold 72% of American clothing.
- Imported goods are more likely than domestic goods to be marked down, due chielfly to the lead times required and longer shipping times.
- Rebate redemption rates are estimated at 5 - 10%.
- Each year, more than 200M copies of the IKEA catalog are distributed. This is more than the Bible.
Ever wonder how we got here? Here being a huge discount culture that sends jobs oversees,degrades the environment, and has corporate retailers ruling the market place. Ellen Ruppel Shell doesn't have all the answers but she does a great job combining history, psychology, and economics together to provide a bit of insight on how we ended up with the marketplace we have - one much different than Adam Smith predicted. I appreciated that she doesn't demonize anyone nor does she promote conspiracy theories. There is no us or them - just us (but some of us do have more power on certain issues and are working to increase short term profit instead of long term well being).
If you're not sure you have time to read this (I listened to it as an audio book on my phone) then here are some key take-aways:
* Customers no longer know the cost of production - so we always think we should get it cheaper
* However, cheaper usually is cheap and not worth the bargin. E.I. 90% of products made for outlet stores are of inferior quality than those made for the dept stores.
* Discount retailers benefit more from the poor than the poor benefit from them (so they have no incentive to increase pay, support national healthcare or other reforms that would reduce poverty)
But really - if you've read this far you should just read the book.
If you're not sure you have time to read this (I listened to it as an audio book on my phone) then here are some key take-aways:
* Customers no longer know the cost of production - so we always think we should get it cheaper
* However, cheaper usually is cheap and not worth the bargin. E.I. 90% of products made for outlet stores are of inferior quality than those made for the dept stores.
* Discount retailers benefit more from the poor than the poor benefit from them (so they have no incentive to increase pay, support national healthcare or other reforms that would reduce poverty)
But really - if you've read this far you should just read the book.