Discussion in 'News - Discussion' started by CSBC, Feb 6, 2013.
4/3rds users its the week before!
Nothing wrong with this explanation at all, but I do need to let a few other bits sink in. Some seem to contradict what I thought I knew before.
Thanks anyway for the time and effort. I see others have given up!
P.S. I'm opening another thread on the Wiki page display diiferences - that really threw me.
We seem to have wandered off-topic.....
Nothing new there! Probably because the original topic was boring..!!
Easily resolved, just bring it back on with an appropriate comment.
But that's actually more off-topic than the off-topic bit...
Very interesting market trend going on there... Perhaps the old adage 'buy cheap buy twice' is catching on and people are paying more for something that will last a generation or two rather than a decade or two?
I believe it reflects more the economic polarisation that is happening across the world. Those that buy cheap usually do so because they cannot afford to buy an expensive product once - even though we all know it is likely to cost them more in the long run. Put simply, the rich are getting richer and the poor are getting poorer - right across the globe.
The recession hasn't hit the really wealthy, in fact it has helped them as they can negotiate better prices from companies/people who are desparate to get the business.
For the past few years, I have to take 2 business trips to Plymouth each year and the luxury boat/yacht builders have rarely been busier than they are now. Starting prices for most of the vessels are over £1million; those I speak to (and I'm not in the boat building business nor do I deal with suppliers to that industry) have said that over the past couple of years they have noticed a significant increase in the number of Chinese visitors calling to check progress of their new vessels. One good job to get, if you have the relevant qualifications, skills etc, is the "delivery boy" for these floating palaces..... an all-expenses-paid several week trip half way round the world to deliver the completed vessel to its new owner
That's more or less what I was trying to say - but I put it very badly in my previous post.
In any recession, the lower income groups struggle more, and so are less likely to spend on non-essentials, whereas the better off can continue to spend as before, and as you say, find even better bargains. The quirky result is that luxury items continue to do well in a recession, whilst most other retail outlets suffer. In an increasingly international market, you find (again as you say), that the rich from other countries can keep the luxury end of the market bouyant.
It was a bit of a cliche to say "the rich get richer and the poor get poorer", but that is effectively what happens. The better off are in a position to benefit from a recession, the less well off end up with less diposable income.
No cliche, it's the truth of what has been happening over the past few years of the current recession
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