The following is an excerpt from a conversation between Jon Akers and Deb Flack. Jon is debating whether to buy a stereo system from Old Town Audio, a locally owned electronics store, or Sound Pro, and online electronics company.
Jon: Deb, I don’t know what to do about buying my new stereo.
Deb: What’s the problem?
Jon: Well, I can buy it locally at Old Town Audio for $1,400.00. However, Sound Pro has the same system listed for $1,150.00,
Deb: So what’s the big deal? Buy it from Sound Pro.
Jon: It’s not quite that simple. Sound Pro charges $39.99 for shipping and handling. If I have them send it next-day air, it’ll cost $69.99 for shipping and handling.
Deb: I guess it is a little confusing.
Jon; That’s not all, Old Town Audio will give an additional 2% discount if I pay cash, Otherwise, they will let me use my VISA, or I can pay it off in three monthly installments. In addition, if I buy it from Old Town Audio I have to pay 8% sales tax. I won’t have to pay sales tax if buy it from Sound Pro since they are out of state.
Deb: Anything else????
Jon: Well. sound Pro says I have to charge it on my VISA. They don’t accept checks.
Deb: I am not surprised. Many online stores don’t accept checks.
Jon: I give up. What would you do?
1. Assuming that Sound Pro doesn’t charge sales tax on the sale to Jon, which company is offering the best buy?
2. What might be some considerations other than price that might influence Jon’s decision on where to buy the stereo system?