One of the most valuable concepts I learned in business school is Willingness to Pay (WTP). Basically, how much is a customer willing to pay for a product or service which is important in pricing & marketing of said product or service.
Some preamble: I went to a friend’s wedding in VA last weekend. He was a friend I met in business school. But 3 months ago, when he invited me, I was just beginning my post school unemployment phase and money was TOOIGHT. Normal me behavior is to book hotels and trains immediately but for the first time in my big girl life, I couldn’t do that. So, I waited till the last minute (AKA once I started working in September) to buy hotels and trains.
I realized that Amtrak uses dynamic pricing (which I didn’t notice before because I always booked early). Dynamic pricing is what Ticketmaster & airlines do with changing prices around consumer demand to make your life hell. So, I booked a one way Amtrak to VA that cost $22 about 3 weeks ago. I was hoping I’d be able to hitch a ride with my friend back to Jersey City so I dragged my feet on the return trip. By the time I looked at a return from DC to Jersey, it was $200 FUCKEN DOLLARS. I like the experience of trains but I couldn’t justify it. So, I booked a greyhound bus that cost $27. I lowkey forgot greyhound existed as an option.
However, I was having a conversation with some friends that also went to the wedding about this. One of them was like “but we make good money now”. Basically, why go through a longer more unpleasant bus ride? I agreed and disagreed with him. First, I still only have $1 in my bank account as of today.Until I get more paychecks, I’m living within my means. My first paycheck went into paying half of credit card & rent. From the second one onwards, I should hopefully be above water.
Where I agreed with him was that, I actually don’t like buses. Like I know it’s effective sometimes but I don’t enjoy taking buses. Something about it makes me feel trapped. I spent hours before the long bus ride dreading it. I got there and the bus was an hour late. Then, I was seated next to the bathroom, which I guess was my fault for not selecting my seat. The overall experience wasn’t crazy. Although, there was this one guy that decided to camp in the bathroom for 2 hours which was very weird. Alas, he didn’t bother me so I guess it was fine. And with traffic, it ended up taking about 6 hours while the train would have taken 4 hours.
All that said, if I had money in my account, I would have gone on the train. Even at $200, my WTP would have been high. I value comfort. I believe most problems or stresses that can be solved by money should be if you have the means. BUT I don’t value it enough to dig myself into more credit card debt because I’m replenishing my accounts. There is a past ultra frugal version of me that would have never even considered paying $200 for a one way train ticket. I’m proud of my evolution. Even though, I still took the cheaper option LOL.
Every dollar has a purpose and should be spent in due time (even if you save now). Except the last $1 in my bank account that I can’t spend so my account doesn’t close haha.
XOXO Gen Z Fire Baby
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