David Sirota, writing for Salon.com, examines the beer market and uses the battle between macrobrews and microbrews as a proxy for the shifting price/value mentality of U.S. consumers:
Nowhere, though, is the battle between the low-price/quantity business model and the higher-price/quality business model more clear than in the world of beer. In the fevered battle between the macrobrew behemoths and the craftbrew insurgents, both sides are digging in for an epic confrontation.
There is no doubt that I fall into the craftbrew camp. After first visiting Germany in 2008 and making friends with East Coasters who have excellent taste in beer, I may now be considered a beer snob. Much in the same way that many view me as a technology snob given my affinity for Apple products.
To me, though, being a snob in this context just means that I have shifted my attitude toward the price versus quality proposition. I do not mind paying a higher price if the quality of the purchase is superior. Why should I settle for tasteless Budweiser when I can pay more for a DNR by Coop Ale Works - a beer with excellent taste and higher alcohol content? Similarly, I’d easily pay more for a Fat Tire from New Belgium Brewing over a Natural Light.
Just like with beer, I have shifted my attitude when considering value in general. No longer am I driven by the cheapest price possible. I want to pay people for great products that last. I don’t mind paying more1 for an entry-level Mac than an entry-level PC because the experience - both in terms of usability and customer service - is worth the small premium. I don’t mind paying Dropbox more for extra storage space despite cheaper alternatives because I find the total experience worth the price. I don’t mind paying Pinboard for a service that I could get free elsewhere because I find it more reliable and know that I am the actual customer instead of advertisers.
I certainly understand personal economies and that there are practical limitations to affording quality. For instance, I do not drive a BMW because of limited expendable income. But like anything else, it is a game of balancing tradeoffs. I prefer to pay in a way that maximizes the value of my dollar instead of simply reducing the number of dollars spent per item. In fact, the price per quality metric often means we pay more in the long term for less expensive items. As an example, you will have to drink far more Bud Lights than DNRs if getting drunk is your endgame.
Does Sirota effectually tie the beer market to a shifting consumer mentality in the U.S. economy? I’m not convinced. With that said, I am certainly rooting for a craftbrew nation - a country where we stop selling our souls for free and cheap products and instead opt to maximize value and happiness while remaining within our means.
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Notice I said entry-level? Any more, an apples-to-apples comparison of specifications illustrates that the “Apple Tax” is largely a myth today. That’s why companies have yet to match price and total specifications with the iPad or MacBook Air. ↩︎