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Original post by SeraphLance
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Original post by AndreTheGiant
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Seriously. This Should Be Illegal.
I hope you weren't serious when you said 'seriously' :)
Would you prefer the government or someone else dictated what the cost should be? I hope not!
Im sure a mechanic on some automotive forum somewhere has started a similar thread about the price of a car tune-up, or a chef has started a similar thread about the price of a nice meal at a local restaurant.
The point is, nobody has to pay for that installation service. And if someone does, then good for Best Buy I guess...
People, mechanics, afficionados, or otherwise, regularly complain about the cost of labor in car repairs and tune-ups, so I don't really see a parallel.
As for chefs, I can't say I've heard that one. The cost of a good meal is really dependent more on the food than on the quality of... uhh... cheffage? I just ate at a mongolian BBQ over here, and had one of the best meals in years for 8 dollars. That's not bad at all.
Here's the problem: setting up a PS3 takes a few minutes for an "expert" (a position fairly easy to reach). food prep takes up to 30 minutes (or, for more exotic dishes, longer) plus the cost of materials, which makes up the bulk of the price anyway. Some of the rest is used to pay the other restaurant staff on top of that. On top of that, it takes substantially more training to be a competent chef than it does to be a competent PS3-setter-upper.
Best Buy is clearly taking advantage of consumer ignorance and fear of technology. My cable internet provider charged $20 for setup, which included plugging in the modem and enabling the service, as well as drilling and wiring the actual coaxial through the house. That's substantially more work than BB's PS3 service (though still not that much) and includes a hell of a lot more liability, due to the house drilling.
Then again, I don't think it's something that should be illegal. If they want to take advantage of people unwilling to do their own research, whatever. I just won't shop there.
But there is also to consider the alternative uses of the Geeksquad employee's time. Setting up a person's PS3 in their home involves not the 5 minutes it takes to plug everything in, but the 20 minutes to drive to the house in the GeeksquadMobile, the 10 minutes to get the person's dog off of their leg, the 5 minutes of plugging everything in, the 10 minutes of the customer arguing about whether or not it's in the right place, and the 20 minutes of driving back to the store. Whatever X number of dollars they charge may be the price at which it is worth it for them to set their foot out the door. They probably don't get too many people taking the service, which is all the better for them, because door to door service is inefficient and expensive to render.
Another example, it would be ludicrous for anyone to pay $500 for a basic, personal website. But that would be what I would charge for it, because otherwise it would be a waste of my time. Someone else might charge $100, which is a much more reasonable price, but their time isn't worth as much as mine, nor do they hate making personal sites as much as I do. I don't expect people to pay that much, neither do I even want to do it, but if they really, really WANT me specifically to do it, then it's going to take $500 to get my ass out of bed.
Prices are not value, prices are a communication of relative value between individuals. Geeksquad clearly values staying in the office more than (InstallationPrice - 1) dollars. A person clearly values having a Geeksquad employee install their PS3 more than (InstallationPrice) dollars. Trade fundamentally requires two parties who value a good or service differently; trade is not possible if everyone values everything exactly the same. If I'm selling boxes of cookies for $5 each, that means I value boxes of cookies at less than $5, that I would prefer to have $5 than I would to have a box of cookies. If you buy this box of cookies, it means you value the box of cookies MORE than $5, that you would prefer to have the box of cookies than you would to have the $5. Even in the simplest of trade arrangements, someone is paying more
in dollars for an item than other person would, given the circumstances. The fact that we are both not forced into this transaction is what makes it absolutely fair, and why trade is always a win-win proposition. At the end of the transaction, we both got something we valued more than what we had before. Some people may even be competent enough to do it and STILL take the service, just because they are busy individuals who value their time more than X dollar bills.