The Power of the Consumer

Economically speaking, “In the hands of the consumer lies all power.”

Many of you may be saying, “Absurd, ridiculous, as if the consumer held any weight in the economic game carried out each day.” No doubt all of us at one point have felt helpless or powerless against the corporate giants we purchase goods and services from each day. We have all experienced downright horrible customer service, and quite possibly dodgy practices. Lets be serious for a moment…if the executives of Enron were willing to create off balance sheet partnerships to hide debt from its shareholders and enrich themselves, then it is all but guaranteed they would have screwed the consumer at first bite. And in fact they did. Enron manipulated much of the California Energy Crisis of 2002 for the “Pure Love of Money.”

While the Enron example is an extreme one. There are many instances in all of our lives where we felt maltreated by the companies we purchase our goods and services. Whether it was an unclear return policy, a defect product with no warranty, or just outright horrible customer service; we have all experienced it. The question is, “What are you going to do about it?” Are you going to just sit back and say, “I stand no chance against this great army. I will be crushed in an instance.” If the answer to that question is yes…then you will be crushed. In fact, almost all of us stand no chance against the corporate titans alone. Standing alone they will always dictate the terms of our patronage. Alone in the world…they hold all the cards. Remember that… “Alone in the world…they hold all the cards.”

When we discover the reality of standing alone, we discover the power of standing together. As we play this economic game each day, we can play it alone or together. If we choose to play it alone then we play on their (Corporations) terms. If we choose to play this game together then it will always be on our terms. But how is this so, you may say. It is so very simple, but so very complex. It is simple in the sense that if a movie theater charged outrageous prices to see a movie and every consumer in the area just simply boycotted the theater then either they would lower their prices or face extinction. Now what do you think they would choose? It is so very complex in the sense that you have to get numerous, rational, intelligent people to choose to act in harmony. It is hard enough for a choir director to get willing intelligent people to sing in harmony, now try getting unwilling intelligent people to act in harmony. That my friend is the key. Any rational intelligent being wants lower prices…but most are not willing to do what it takes to get those lower prices.

This example is very simple, but think in terms of the masses acting in harmony to get goods and services at prices they see as reasonable. The super overpriced coastal real estate markets could be crashed overnight. Something that would be dire for those who have leveraged themselves to the tilt to get in, but a Godsend for those priced out of markets that are so overvalued it is an underlying detriment to the local economy. All it would take is a large enough of real estate buyers to simply leave the market for a time, and sellers would be forced to lower prices in order to get people to reenter the market. This could only be accomplished if all the buyers acted in harmony. An almost impossible feat.

As the publisher of the Wiser Money blog, I hope this article has instilled in your mind the power of the consumer. We truly do hold all the cards when we act in harmony.

Harmonize the consumer…take back the world.