> If you allow a person to buy a $800 sofa which looks great on the outside and is made in China albeit with extremely low quality materials vs. a sofa which looks almost exactly the same but is priced at $1500 but is of much higher quality - most consumers will obviously choose the $800 dollar sofa vs the $1500 since that's how the free-market functions. Is this rational though?
This is rarely the choice though. In my experience, the choices tend to be the $800 low quality sofa, the $3000 low quality but with a name brand sofa, and the $6000 low quality but with an even fancier name brand sofa.
Presumably there are some manufacturers that still produce furniture that's actually made of massive wood rather than cardboard and veneer, but it's becoming increasingly rare.
I don't disagree with you - but this also explains the determining factor in which product wins and why today's markets or sofas are lower quality than they were 30+ years ago. If price doesn't matter - what's going to be the driving force in buying behavior? Consumer behavior in other words is no longer driven by quality or long-term cost: today, people will simply choose the lowest cost items and deal with the pain of having to replace it every X years. This drives the market to place a premium on what then? LOWEST COST. Lowest cost = the manufacturers that cut corners and reduce quality, so the market driving force (consumers) lead to a game where the lowest cost producers win and thus saturate the marketplace with junk.
I bought a sofa from a local builder a few years ago for around $2500. The frame is well built but the cushions lost their original shape within 6 months. All told, I'd rather have the sturdy sofa that looks a bit sloppy over a sofa that will break if more than three friends sit on it but I'd really rather have a sturdy one that still looks great after five years.
There are loads of manufacturers that still do this. Go to any furniture row, you’ll see the Ikea parking lot is full, the rc willey parking lot less so, and the premier quality furniture brands parking lots nearly empty.
This is rarely the choice though. In my experience, the choices tend to be the $800 low quality sofa, the $3000 low quality but with a name brand sofa, and the $6000 low quality but with an even fancier name brand sofa.
Presumably there are some manufacturers that still produce furniture that's actually made of massive wood rather than cardboard and veneer, but it's becoming increasingly rare.