[Yugocean]

Economist Alfred Marshall is called as father of welfare economics. Recently, I was reading his theory, in which it became so clear that every unit of a product has the same value, and the consumer buys the goods till satisfaction. After which, due to lack of sales, the value of the product starts to decrease, and those who were not able to buy the item earlier, buy it to their satisfaction.

Marshall has not identified the concept of discount in the price of the product, but only pointed out the purchasing habit of the intelligent consumer. This concept is such that product which are not to be consumed or used, should not be purchased for decoration or collection. When consumer leave them as they are, this will reduce the value of the item for the market.

This theory is also the originator of the modern "Buy at Dip" and the opponent of "Buy at Top". But this buy at dip should also be done only when you actually need it. Otherwise not.

[peachpurple]

Wow deep knowledge indeed. Thanks for sharing. Usually we do not buy goods for collection or decoration. Dont waste money.

[Fergal]

product which are not to be consumed or used, should not be purchased for decoration or collection

Sorry but I am not sure that I fully understand this. Does it mean that we should only buy products which have a practical use?

[Treborika]

I think as for me we should only buy items that we need and use them immediately after we make purchases. Some goods depreciates in value with time. Therefore lying these items idly make us to incur some losses upon them.

[JASPREET]

It may not be possible to save money with this way but one thing we need to do is to not purchase products which are of no use for us as sometimes we do buy these thinking that we will use in the future

[Yugocean]

product which are not to be consumed or used, should not be purchased for decoration or collection

Sorry but I am not sure that I fully understand this. Does it mean that we should only buy products which have a practical use?

sorry for the late answer

Actually yes, we can buy only up to our purchasing capacity. And by buying a product we do not need, we will reduce our purchasing capacity.

But, if we use this purchasing capacity to buy only the essentials, and as long as our needs are met, we can save the balance amount.

And for business, If a company will see drop in the sale of its surplus product, then it will reduce the value of product to make it balance with consumer's purchasing capacity.

[Fergal]

Thanks for your reply Yugocean, it's a great point and you explain it very well. It reminds me of the quote from Warren Buffett "If you buy things you do not need, soon you will have to sell things you need".

[Yugocean]

Thanks for your reply Yugocean, it's a great point and you explain it very well. It reminds me of the quote from Warren Buffett "If you buy things you do not need, soon you will have to sell things you need".

Thank you.

That is how Rich dad become rich and not well educated poor dad.

[augusta]

This is a good one it is good to mostly buy things that are really needed even when you are buying them cheap. it will help you save money and continue to buy only want you need

[Treborika]

It's a good and so useful information for consumers. A product depreciates in its value as time elapses.

[Yugocean]

Now companies bring new products with new updates, so if you want to use those updates, then only buy it, otherwise wait till you really need it.