Or, how much can you afford to spend?
This is part 2 of an ongoing series devoted to helping people discover a better way to purchase a computer. In this series I am explaining in detail how I go about helping friends and family through the confusing process of making a computer purchase when they don’t know very much about computers, other than they need one, by pretending to have a conversation with a fictional friend named Sarah.
You can read part 1 of this series here.
Handing Sarah a cup of hot chocolate, I sat down across from her in my living room and prepared to help her find the computer she so desperately seemed to want. Sarah blew on the hot chocolate to cool it down as she waited for me to just tell her which computer she should buy so she could go out and buy it knowing that if something went wrong she could always blame me. Poor Sarah, I thought to myself as I sipped my own cup. She’s smart, but she’s never bought a computer before and thinks I’m going to do what everyone else she’s asked for help from has done and just give her my opinion and send her on her merry way. Little does she know that I’m an information psychopath and was about to give her a full course on how to buy a computer through my patent pending (not really) 5 Step program.
Taking another sip of hot chocolate, I put my cup down and spoke.
“OK, Sarah. Let me get this straight. You’re here because you’ve been going crazy looking to buy a computer and you don’t know which one to get. You’ve been asking friends and family for advice, surfing the internet and reading magazine advertisements, but all you’ve done is get confused because the more advice you get the harder it is for you to make a decision. Right?”
“Yeah. I’ve been killing myself trying to buy a stupid computer but everyone I ask to help me has a different opinion of what I should get. My uncle, who works as a programmer for a software company, told me I should get a really powerful laptop but my mother told me I would be better off just buying a desktop on sale at WalMart. Then I asked my friend who likes to do photography stuff and she told me I should just buy a Mac, but another friend who works in the graphic department for a big company told me a PC would be better. I looked online, but there was so much information I just didn’t know where to start! Ram, video cards, CPUs, operating system wars, laptops vs. desktops… it’s all just too confusing for someone like me who doesn’t know, or care, about every little detail of a computer. Why can’t this be simple, like buying a new car?”
That made me laugh.
“Why are you laughing?”
“It’s just funny that you would say that.”
“Say what?”
“‘Why can’t this be simple like buying a car?'”
“What do you mean?”
“Well, buying a computer can be simple, as long as you approach the process the same way you would if you were buying a car.”
“I think you’ve just confused the heck out of me.”
“Alright, let me put it this way; if you were looking to buy a new car would you be willing to buy it sight unseen based solely on the recommendation of a friend?”
“Well, probably not.”
“How about buying a Ferrari because your car enthusiast uncle told you it would be great for driving to and from the grocery store?”
“That would be pretty silly.”
“What if your mother, who only used her car once a week to get to her bridge game, told you to buy a beat-up, used, gas-guzzler that would need expensive maintenance every year when you were completely reliant on the car to drive the 50 miles a day to get to work or else you couldn’t eat?”
“I wouldn’t buy such a crappy car if I really relied on it like that. I’d buy something I could depend on.”
“Exactly.”
Sarah just looked at me with a strange look on her face. It was the same look I used to get from women when I’d start talking about the improbability of tachyon beams being possible according to the laws of physics before I learned to simply keep my mouth shut.
“GeekMan, I don’t think I’m following you. What are you trying to say?”
“I’m trying to say that people tend to recommend what works for them, for their situation, and not necessarily what is best for you in your situation.”
“But, if I can’t trust what my friends and family recommend, how am I supposed to make a decision on what to buy?”
“I’m not saying you can’t trust them, I’m only trying to make sure you see your friends’ and family’s recommendations for what they truly are, and also what they are not.”
“Huh?”
“What your friends and family have done is give you recommendations based on their opinions. What they have not done is give you truly unbiased advice based on your personal needs. You should certainly listen to what your friends and family tell you about their own experiences, but you don’t need to follow their recommendations if you don’t feel it’s the right advice for you.”
“So, basically, no matter what other people tell me I should get, I still need to make up my own mind?”
“Exactly.”
“But that’s the problem! If I knew what to get I wouldn’t be asking people what I should buy! How can I possibly buy something when I have no idea what to buy?”
“Clam down, Sarah. No need to spill your hot chocolate.”
She immediately sat down and put her cup on the table careful not to spill any.
“By the way, why did you give me hot chocolate in the middle of June? I mean, really?”
“Don’t mock the hot chocolate. You can yell at me if you’d like but attacking the sweet, delicious hot chocolate is just mean.”
“You are really weird.”
“I know.”
“Fine. So now that you’ve told me that all the advice I’ve gotten so far isn’t going to help me, how will your advice be any better?”
“My hope is that my advice will be better because I won’t really be giving you a recommendation. Instead, I’m going to help you by walking you through some simple steps that will naturally lead us to the computer that’s right for you.”
“Well, that sounds more like what I was hoping for when I came here.”
“Great. There are only 5 steps that we need to go through before we’ll have a solid idea of what computer is right for you. They are as follows;
- The Budget
- The Form
- The Function
- The Inside
- The Process
You don’t really need to do them in any specific order, but I’ve found that doing them this way usually works best for people like you who don’t have any idea what they really want.”
This seemed to mollify her and she took one of the cookies I had on the table and began chewing it as she spoke.
“Alright, so now we need to figure out how much I can spend on this thing?”
“Correct.”
“Well, how do we figure out my budget if I don’t know how much these things should cost?”
“To answer that allow me to bring back your car buying analogy. If you wanted to buy a car, especially if you didn’t know anything about cars, wouldn’t you first try to figure out how much you could afford?”
“Yeah, but everybody knows how much cars cost!”
“Really? And how much does a new car cost?”
“Around $20,000.”
“What about budget cars?”
“They’re probably under $15,000, but most people don’t buy them because you get a lot better car for just a little bit more money.”
“But some people do buy them, right? People who need cars but can’t afford $20,000?”
“Yeah, I guess. I mean, if I just didn’t have the money to buy a more expensive car, or if I just needed to drive around town on the weekends or something, it might make sense.”
“And what about luxury cars?”
“Oh, they cost a lot more. Over $50,000 I think, but I’d never spend that much on a car.”
“Yet a lot of people own BMWs and Mercedes’, right?”
“Yeah, but those people have the money to buy those kinds of cars and I don’t.”
“So, what you’re telling me is that, for you, a new car costs around $20,000. But for someone else a new car might cost less than $15,000 or over $50,000. It just depends on their personal circumstances, right?”
“Yeah, so?”
“So, we can use that same idea here in figuring out your budget.”
“How do we do that?”
Watching her eat that cookie had made me a bit munchie myself. I leaned forward and grabbed a chocolate chip one for myself.
“We begin by examining your personal financial situation and then deciding on a reasonable budget that works for you. We don’t have to come up with a specific amount, but we should be able to find a dollar range that you’re comfortable with spending. For example, a business man might have a budget between $800 and $1,100 for a work computer. Or a poor college student who needs a computer for taking notes and doing homework might have a budget that only allows for a $700 maximum. Someone else might have saved for a year and now has a budget between $4,500 to $6,000 for the absolute best gaming machine ever made, complete with neon lights and a custom paint job.”
“I don’t need to go that far!”
“That’s fine. Whatever we decide your budget is, we need to know it before we move on to step 2 or else you’re just going to wind up right back here afterwards trying to rework your budget to fit your computer, instead of fitting the computer into your budget.”
“Well, I certainly don’t want to do that.”
“Which is why we’ll start with a budget.”
“OK.”
Sarah reached for another cookie while I got my pen and paper ready.
“So, tell me, what’s the absolute maximum amount of money you could spend on a new computer?”
“I’m no supergeek like you, so my computer doesn’t need to cost an arm and a leg. But I’m not exactly willing to go ultra-thrifty either, so I can get something a bit more expensive than the computer’s I see in the Sunday circulars for $299.”
“OK, where does that leave us?”
“In the middle, I guess. I’m pretty sure I could afford around $1,200 for this computer.”
I wrote that number down on the paper as Sarah finished off her second cookie and sipped her hot chocolate.
“So, does $1,200 include software?”
“Don’t computers come with software?”
“Most come with an operating system and some other basic programs, but if you need something like MS Office, or photo editing software, or something else like that, then most likely you’ll need to pay for it separately. And don’t forget about the protection software like antivirus and antispyware.”
“Wow. I didn’t think of all that.”
“Which is why you’re asking me for help, right?”
“Right.”
“So, including a rough allowance of $200 for software, and keeping in mind that the software costs can change depending on your personal needs, what do you think you can really afford?”
Sarah reached for another cookie as she thought that one over.
“Well, what if I only look at computers that come with all the software I think I’ll need? I’ve seen computers advertised in magazines that come with antivirus and MS Works and stuff. Couldn’t we just look at those?”
“If you really wanted to, I couldn’t stop you. But I’d like to point out that those computer ‘deals’ usually come with a whole lot more baggage than you might see at first look.”
“What do you mean?”
“Well, usually the antivirus and antispyware software that comes pre-installed on those computers are only good for a short time before you’ve got to pay for them. Plus, the office software in MS Works uses slightly different file formats than the full MS Office software which, depending on your needs, might lead to problems when you try to share files. And let’s not forget that whoever’s selling those computers has to make money somehow, so they usually load up the computers with ads and ‘trial’ software that causes the computer to slowly degrade over time. Meaning it might begin running slowly, crashing, or having other, even worse, problems.”
“That doesn’t sound like such a deal.”
“It’s not. And I’m very tired of fixing those type of machines for my friends and family who don’t listen to me and buy them even though I told them not to.”
After finishing off the cookie, Sarah took another sip of cocoa before speaking.
“OK, then what about using financing instead? Why not just apply for credit from the company we decide to buy from so I can afford a more expensive computer?”
“Again, I can’t stop you, but I would really advise against doing that.”
“Why? By paying something like $50 a month I could buy a $2,000 computer. Isn’t that the smart thing to do?”
“Not really. Without going into all the math involved, those payment plans have outrageous interest rates and draconian rules that are meant to cost you, the customer, far more over the long term than it would have cost had you simply paid for it in full. Plus, by making only the monthly minimum payment, you wind up paying for a computer for a long, long time. Sometimes you pay for it even after it’s become obsolete and you’ve moved on to another, newer computer. In almost every case, you’re usually better off simply paying for the computer in full by using a current credit card and paying it in full at the next billing cycle. Even better than that would be to use cash, but that might be problematic if you’re ordering over the internet or by phone, so a credit card paid off quickly is the next best thing.”
“What if I can’t afford the computer I really, really want?”
“That’s why we’re figuring out your budget first. By knowing up front how much you can realistically afford to spend we can avoid even looking at the more expensive machines out there, which will hopefully keep you from being tempted to buy something you couldn’t afford in the first place. If you could only afford $1,000 then we won’t look at any computer that costs more than $1,000. Why tempt yourself with that ubermaxmachine that goes for $3,000 when you know you can’t buy it? That’s like going to a Porsche dealership when you know you can only afford a Mazda.”
“You know, that actually makes a whole lot of sense.”
As she reached for her fourth cookie Sarah suddenly looked up and saw I was watching her and smiling. Giving me a dirty look, as if her eating three cookies in less than two minutes were my fault, she hmphed and sat back in her chair.
“Don’t look at me like that. They’re tasty.”
“I know, that’s why I eat them. I just don’t eat them quite as fast as you.”
“Shut up.”
“Right. So, now that we’ve gone over what you need to include in your budget as a whole, what would you say your computer buying budget really is?”
“Well, now that I know I need to buy software too, I think I’ll have to up my original budget a little bit to $1,500. It’s a bit more than I thought I’d spend before I knew I’d have to buy software, but not so much that I can’t afford it.”
“Great! $1,500 it is. And now that we know what your budget is we can move on to the next step.”
“What’s the next step?”
“The next step is The Form.”
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