Are you Frugal or Cheap?

[Big Toe]

It often amazes me how much time a person is willing to spend on researching and trying to bargain for a product before they buy it.
They can go to every known shop to ask for the best price for the same product. They would be extremely happy if they got it $2 cheaper than everyone else. The very same person can, without much thought get an ulu condominium at a ridiculously high price and yet at the same time sometimes spend on extremely low quality product. I am sure you know more than a few persons with similar traits.

Some thoughts.

1. If it is the same product, why would a person burn a few weekends to look for the best deal to save a few dollars? The best deal is often the nearest shop that provides decent customer service and after sales. Nowadays it is not quite possible to have shops sell at a much higher price and survive so prices are more or less the same.

2. Condos Vs HDB Vs Landed. I cant afford Landed in this lifetime but I probably can choose between a condo and a HDB. So between these 2, I would rather live in a larger HDB that is near a train station and amenities(if possible not far from my workplace) rather than a small ulu condo. Convenience beats privacy.

3. Low quality products. The experience of using the cheapest products is often very bad. The cheap headphone sounds horrible, the bicycle bought from a hypermart is a pain to ride, low grade toilet paper is just too rough. So chances are these will be unhappy experiences. Life is just too short to be unhappy. While there is no need for the highest quality, go for at least the minimum acceptable quality.

[yeokiwi]

If it is the same product, why would a person burn a few weekends to look for the best deal to save a few dollars?

Probably the person is enjoying it.

But I did spend quite some times looking for a door replacement online. I am not trying to be cheap but I do not feel like being the carrot either. Somehow, the renovation industry is such that many contractors are not very willing to set the bottom line for the product+service or provide more information.
I am willing to pay higher for a better product but at least, I will like to know what is the price of the bare minimum.

I suppose they will like to earn a reasonable profit which I agree. But, as a non-insider of the industry, how would I know what I will get for a reasonable sum of money unless you provide me with the information?

[Temperament]

It often amazes me how much time a person is willing to spend on researching and trying to bargain for a product before they buy it.
They can go to every known shop to ask for the best price for the same product. They would be extremely happy if they got it $2 cheaper than everyone else. The very same person can, without much thought get an ulu condominium at a ridiculously high price and yet at the same time sometimes spend on extremely low quality product. I am sure you know more than a few persons with similar traits.

Some thoughts.

1. If it is the same product, why would a person burn a few weekends to look for the best deal to save a few dollars? The best deal is often the nearest shop that provides decent customer service and after sales. Nowadays it is not quite possible to have shops sell at a much higher price and survive so prices are more or less the same.

2. Condos Vs HDB Vs Landed. I cant afford Landed in this lifetime but I probably can choose between a condo and a HDB. So between these 2, I would rather live in a larger HDB that is near a train station and amenities(if possible not far from my workplace) rather than a small ulu condo. Convenience beats privacy.

3. Low quality products. The experience of using the cheapest products is often very bad. The cheap headphone sounds horrible, the bicycle bought from a hypermart is a pain to ride, low grade toilet paper is just too rough. So chances are these will be unhappy experiences. Life is just too short  to be unhappy. While there is no need for the highest quality, go for at least the minimum acceptable quality.but not for most

Regarding point 1, it may be true for some products and situations.
But you will be surprised even for Rolex watches which has "control-price" at authorised dealers, you can save hundreds if not thousands of dollars from some but not all authorised dealers.
i did it more then once when i purchased for my wife.
Now i not sure it is still possible.
Another item is wine.
At Marine Parade, you can shop at NTUC, GIANT, or COLD STORAGE.
No price for guessing which shop is the most expensive.
In fact, that particular shop is meant for more "Atas People" in the past.
And wine is usually a control-price item too.
If you can afford and you are a connoisseur, it is the cheapest to order wine "in bulk" from the wholesaler.
And it's deliver to your doorsteps FOC.
My niece does that because she almost drink everyday.

And why most people go to JB to shop for so many items?
i think all of us like to stretch our dollar as far as possible if given the time and means to do it.

[Big Toe]

I have come to the conclusion that hunting for a great deal for many people is a hobby in itself.
Because the dollar savings do not justify the time and effort spent on it.

As Temperament pointed out, buying Rolex can save a few hundred dollars, it's a few hundred dollars, the savings probably justifies a certain degree of RnD on the item.

I too used to go JB very often to shop for many things but that's because I used to have lots of work to do there, parking is free and it's along the way. Now I no longer do as I traded in my car for a 2nd hand beat up van to carry goods around. Am I being frugal or cheap driving a used van? A van is actually extremely useful, very utilitarian. Can carry goods, can carry people. Not much a van cant do that a car can except go malaysia and going into low multi storey car park. I even managed to squeeze a motorbike into it when a friend had a breakdown on the road. Also ferried a van load of people when the MRT broke down previously. And one litre of diesel goes abt 19-20km, cheaper further. Now I am a van fan, since I converted, there is no looking back. The amount of money spent on a car is just plain ridiculous nowadays, and it looks to stay that way.

[weijian]

It often amazes me how much time a person is willing to spend on researching and trying to bargain for a product before they buy it.
They can go to every known shop to ask for the best price for the same product. They would be extremely happy if they got it $2 cheaper than everyone else. The very same person can, without much thought get an ulu condominium at a ridiculously high price and yet at the same time sometimes spend on extremely low quality product. I am sure you know more than a few persons with similar traits.

Some thoughts.

1. If it is the same product, why would a person burn a few weekends to look for the best deal to save a few dollars? The best deal is often the nearest shop that provides decent customer service and after sales. Nowadays it is not quite possible to have shops sell at a much higher price and survive so prices are more or less the same.

2. Condos Vs HDB Vs Landed. I cant afford Landed in this lifetime but I probably can choose between a condo and a HDB. So between these 2, I would rather live in a larger HDB that is near a train station and amenities(if possible not far from my workplace) rather than a small ulu condo. Convenience beats privacy.

3. Low quality products. The experience of using the cheapest products is often very bad. The cheap headphone sounds horrible, the bicycle bought from a hypermart is a pain to ride, low grade toilet paper is just too rough. So chances are these will be unhappy experiences. Life is just too short  to be unhappy. While there is no need for the highest quality, go for at least the minimum acceptable quality.

Most of these can actually be explained by behaviorial finance.

For (1) and (3), Since the mind is already set to buy the product and the more expensive price has been firmly anchored, any savings is actually a 'reduction in losses'. Loss aversion as you have it.

For (2), Our memory enjoys and frequently only remember the 'most intense' moments. Spread out the convenience gains over many years and it pales in comparison to that singular moment where you have your bragging rights....Often, we myopically only focus on 1 company in the our portfolui, rather than take the broad view by looking at the portfolio in context as well.

[soros]

Directors reporting substantial profits for the company but still resolve not to declare a dividend - are they frugal or cheap ?

[Big Toe]

For companies not declaring a dividend, they could be frugal or being conservative over their finances.
Dividends could be used to pay off debts of high interest.

Or the reason why they are not paying is they don't have the money to pay, as we have found out in many cases. Paper profits, investment marked to market gain, increase in intangible assets, etc etc Much like our CPF, it's there but you cant touch it.