
Luxury vs. premium - peter123
http://sethgodin.typepad.com/seths_blog/2009/05/luxury-vs-premium.html
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brc
I don't think this is always clear-cut. Sometimes premium goods have a certain
amount of luxury in them to justify the purchase price. A good example is a
Mercedes. In most countries, even the base model Mercedes has a high standard
level of trim, and luxury features. Yet, in Germany, you can still purchase
that vehicle with plain trim and denuded of lots of the luxury features. Most
of the taxis are like this. The base German model can be considered a
'premium' product, because it has a higher level of engineering, safety and
build quality than other vehicles, but doesn't have the luxury baubles which
people like to have to justify the higher purchase price.

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jerryji
"I can afford to spend money without regard for intrinsic value."

What is the precise definition of an "intrinsic value"? What if the "intrinsic
value" consists mainly perceive value, i.e., the value of I-feel-good -- does
a $50,000 jewelry have more "intrinsic value" than a $5,000 custom-made suit?

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stcredzero
What is "intrinsic?" What is "value?"

Value seems to be pretty contextual. The relative value of a letter written by
Leonardo Da Vinci and a used life preserver change in the middle of a flood.
One can see this as intrinsic value asserting itself over perceived value. (In
your example, the $5000 suit may find itself much more valuable than the
$50,000 baubles if the city has been destroyed by a flood, it's very chilly,
and the suit happens to be made out of wool.)

My sister has a saying: Unless someone is going to lose a life, or lose a
limb, it's really no big deal!

Intrinsic value has its basis in our experience of living. It is based on
biological needs and our psychological makeup as determined by the particulars
of how our minds happen to work. All the other value is an elaboration on
this.

Also note, that psychologically based needs are also highly contextual.
There's also no clean demarcation between physical and psychological needs.

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jkmcf
IIRC, (it's been a few years), this might help Seth and others:

[http://www.amazon.com/Zen-Art-Motorcycle-Maintenance-
Inquiry...](http://www.amazon.com/Zen-Art-Motorcycle-Maintenance-
Inquiry/dp/0061673730/ref=ed_oe_p)

Otherwise, you might just go crazy!

Personally, when I want to buy something, I always try to purchase the best
available I can afford.

By afford, I mean something with credit I can pay off without worrying too
much. This was mainly learned from my buy and sell routine with guitars. If I
had just purchased that PRS right off the bat, I could have saved a lot of
money :)

By best, I mean based on ratings and features important to me.

~~~
stcredzero
I was thinking of posting another link to that book, but I had just done so
recently in another thread.

Another interesting idea: Barry Schwartz's _The Paradox of Choice_

[http://www.ted.com/index.php/talks/lang/eng/barry_schwartz_o...](http://www.ted.com/index.php/talks/lang/eng/barry_schwartz_on_the_paradox_of_choice.html)

Sometimes trying to maximize is more trouble than it's worth. "Satisficing" is
a good way to economize. Save your maximizing behavior (and thus your mental
resources) for the choices that matter the most.

