The Boston Globe published an interesting article on what they term “the hidden economy”, the proliferation of unexpected charges that catch consumers unaware.
[The printer is] one of the most common peripherals in the computer age and so cheap — at first blush, anyway — that stores often give them away when you buy a PC. Yet how many people realize, when they walk out of CompUSA, a nice $99 inkjet model tucked under their arm, that it’s likely they’ve just committed themselves to spending nearly $1,500 on ink cartridges over the next four years? (In fact, only about 3 percent realize it, according to Stanford economist Robert E. Hall.)
$1500 in four years? Is this for real? Inkjet cartridges are expensive, no question, but do people really spend nearly $400/year on them? This is the old “give away the razor and make it up on the blades” trick.
The article discusses other hidden fees, from cell phone overage charges, to credit card fees, to hotel minibar rates. These shrouded fees are effective because many consumers are “unsophisticated”, or “myopic”. They only look at the Big Number (the price of the printer, the credit card interest rate, the hotel rate), but don’t look at the Little Numbers (the cost of ink, the credit card terms, the hotel’s parking fees and restaurant rates).
Truly sophisticated shoppers can save money by looking for companies and plans that feature hidden fees; so long as they stay on top of things, they save money. Everyone else, though, could save by paying more up-front and avoiding the danger of hidden fees.
[The Hidden Economy from The Boston Globe]
GRS is committed to helping our readers save and achieve your financial goals.Savings interest rates may be low, but that’s all the more reason to shop for the best rate.Find the highest savings interest rate from Ally Bank, Capital One 360, Everbank, and more.
This article is about Odds and Ends
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.
Discover is a paid advertiser of this site. Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.
SEARCH FOR RECENT ARTICLES
I believe it for some people…my mother, for example, prints out EVERYTHING. I only print out a few pages a month, usually. And aren’t there a group of monks somewhere that refill cartridges for a fraction of the cost of new?
Even with the high cost of admission, a movie or a ballgame is similar. Buy a hot dog or some popcorn and you’ll very quickly be spending a fortune.
loading....
My frugal approach to printers:
– Stick to B&W. If you need color photos, order prints online. (Or borrow the printer at the office!)
– For inkjet, consider a refill kit. I refilled my parents’ Canon BubbleJet cartridge five times before upgrading them to a used laser printer.
– For laser printers, consider an older HP. They may not have the highest resolution for images, but they’re great for everyday web and word processor printing. They’re often sold cheaply at yard sales by people that have moved on to color. I’ve had luck with the horizontal loading 5/6MP and 4L. The vertical loading 5/6Ls tend to jam.
– Keep an eye out for old printers at your office. Over the years our place has thrown out several with toner. Many monitors too.
– If you’re not refilling cartridges, remember to take your empties to Staples for recycling. They’ll give you a $3 off coupon for each one your bring in.
loading....
Great tips, dokaben.
For several years, my wife and I used a personal laser printer. It was awesome. It cost just $200 new, and we only had to buy one $60 toner cartridge in four or five years. The quality was great. (I think it was Samsung.) Unfortunately, it was a parallel device, so when we switched back from PC to Mac, we had to get rid of it. I loved that machine.
loading....
I just look for refurbished printers at Fry’s Electronics (or online at thir Outpost.com site). For under $40, I get a printer with full-size ink cartridges, and when they run out, I sell the printer on ebay for $20 and go buy another (it pays to buy two or three printers at once if you find a screamin’ deal).
loading....
I might buy one cartridge per year at around $26 to $34 Canadian. I buy the recycled ones when I can find them. I don’t buy a lot of items that have hidden fees, but I do have an annual fee on my credit card. But it’s only $20 and I get %11 on it. What bugs me are all the set up fees with utilities. It costs $44 to get my cable turned back on if I decide to cancel it.
loading....
I think the only thing I print now a days are directions from Google maps and labels for x-mas cards.
loading....
Always bring your own water or soda to the movie theater.
loading....
I wouldn’t have such a problem purchasing my snacks at the cinema if they sold food I actually want to eat, and at reasonable prices
loading....
EZ PASS: I just learned that ez pass is charging $1.00 to delivery your bi-monthly statement, and that’s whether you have it delivered by regular mail or email! I have never heard of such a thing. This is on top of the $1.00 per month fee they started charging after mismanagement, since afterall, ez pass was supposed to save money since fewer toll collectors would be necessary.
So, the only way to avoid this fee is not to receive a statement. It’s outrageous!
loading....
Yes there is a system in place that is for the business behind closed doors, that only a select few can see what is going on. I have worked in the Retail industry and I know, there is nothing in it for the customers…ONLY WHAT YOU SPEND AND ADD TO “THEIR BOTTOM” LINE and definitely not yours. I have been training my wife, who used to be an avid spender about the tricks of the retail business. OH! last quote of the day “THERE IS NO SUCH THING AS A SALE” no one is in business to loose money…please remember that. Most malls markups are 40-75% and some maybe hirer…remember they do not own the space they are located in…they rent that space and charge it to you. You can’t see it unless you know what to look for.
loading....
I buy printer cartridges sometimes but also have bought ink refill kits. I print coupons on my printer but do most of my shopping online to get the specific items I need, minus sales tax, usually free shipping and additional coupon code discounts. Shopping online has kept me from temptation at the malls and I really do only buy what I need now.
loading....