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Report: Consumers Save $8,870 Annually By Having Broadband
Primarily Through Shopping Online, Saving Gas

A new study by the Internet Innovation Alliance insists that consumers experience a $8,870 annual savings on goods and services simply by having a broadband connection. The study (simple graphical break down, press release) achieves these numbers by estimating the money saved by broadband users through only cost comparison, access to "a deeper inventory" of items, and the gas saved by not having to drive to brick-and-mortar stores. Obviously you could have done all of this with dial up (albeit painfully), and the math here seems flaky, but who's counting.

The study takes the average cost of broadband for most users per year ($490, or $40 a month, insists Pew Research), the average U.S. household income before taxes of $63,685, then mashes it with selective nuggets of data from the U.S. Department of Labor to calculate the theoretical savings. Interestingly, one of the only things that got more expensive to do online with your broadband connection was consume news, thanks primarily to the growth of paywalls:
quote:
Of note, the percentage consumers can save by getting their news online dropped by more than four percent since 2011's analysis, compared to the percentage of savings climbing or remaining steady in most categories. This is due to more publications charging for web content and rising online subscription costs.
Granted the large ISPs behind the Internet Innovation Alliance are doing their best to erode those savings on the other end of the equation through a bevy of constant rate hikes, ranging from hikes for DVR rentals and cable TV subscriptions, to new modem rental fees and bandwidth caps with overages.
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AnonPerson
join:2000-08-26
Lexington, KY

AnonPerson

Member

Keep it a secret!

Don't tell our ISPs that or we'll see another spike in our bills!
ShellMMG
join:2009-04-16
Grass Lake, MI

ShellMMG

Member

Re: Keep it a secret!

No kidding! It's also an excuse for the "revenooers" to come after us for internet sales taxes on stuff we buy from other states.

A medical condition keeps me from trolling the malls during the holidays, so I'm extremely grateful to have online shopping. Saving on gas is a huge bonus.

dnoyeB
Ferrous Phallus
join:2000-10-09
Southfield, MI

dnoyeB

Member

nothing to do with broadband

its not having broadband that is the savings. its having access to the internet. Its this one and the same today?

norbert26
Premium Member
join:2010-08-10
Warwick, RI

norbert26

Premium Member

Re: nothing to do with broadband

said by dnoyeB:

its not having broadband that is the savings. its having access to the internet. Its this one and the same today?

most internet access today is "broadband" unless we are talking about the few in rural areas stuck with dial up. Yes dial up will get it done but some web sites (many) are so bloated that shopping for example is cumbersome using it. Even a "slow" 768 DSL connection would be better then a dial up connection.

dnoyeB
Ferrous Phallus
join:2000-10-09
Southfield, MI

dnoyeB

Member

Re: nothing to do with broadband

I agree with you but do we really want to use 'internet' and 'broadband' interchangeably?

IowaCowboy
Lost in the Supermarket
Premium Member
join:2010-10-16
Springfield, MA

1 recommendation

IowaCowboy

Premium Member

I prefer the malls

I do most of my shopping the old fashioned way, at the mall. 95 percent of my purchases come from the various merchants at the Holyoke Mall at Ingleside (Holyoke, MA). I buy my electronics at Best Buy, my household goods at Target, clothing at Macy's, Appliances and tools at Sears, cell phones/accessories at the Verizon Wireless corporate store, computer stuff at the Apple Store, etc. The cost of getting there is included in my bus pass (since the car cannot get an inspection sticker and I cannot afford to fix it). The nice things about the malls is instant gratification, you go home and unbox it, no waiting for the UPS guy or missed/stolen packages. As there are very few recreation opportunities in Western Massachusetts, going to the mall is a primary form of recreation for me. I go to Holyoke Mall a lot that I've even unlocked the Mall Rat badge on my Foursquare account.

I don't like shopping online unless it is a hard to find or specialty item. I have had mixed experiences from shopping online from good to not so good (such as merchandise that appeared to be used or damaged goods). Also, shopping in the malls, you can reject damaged merchandise on the spot. The packaging is a telltale sign of the item's condition and if the packaging is damaged, appears to have been opened/returned, or has the seals broken, I can reject the item on the spot and not take it to the register. Also, I dig through the shelves and look for the item with the best packaging.

I just wish we did not have that 6.25 percent sales tax.

norbert26
Premium Member
join:2010-08-10
Warwick, RI

1 recommendation

norbert26

Premium Member

Re: I prefer the malls

said by IowaCowboy:

I do most of my shopping the old fashioned way, at the mall. 95 percent of my purchases come from the various merchants at the Holyoke Mall at Ingleside (Holyoke, MA). I buy my electronics at Best Buy, my household goods at Target, clothing at Macy's, Appliances and tools at Sears, cell phones/accessories at the Verizon Wireless corporate store, computer stuff at the Apple Store, etc. The cost of getting there is included in my bus pass (since the car cannot get an inspection sticker and I cannot afford to fix it). The nice things about the malls is instant gratification, you go home and unbox it, no waiting for the UPS guy or missed/stolen packages. As there are very few recreation opportunities in Western Massachusetts, going to the mall is a primary form of recreation for me. I go to Holyoke Mall a lot that I've even unlocked the Mall Rat badge on my Foursquare account.

I don't like shopping online unless it is a hard to find or specialty item. I have had mixed experiences from shopping online from good to not so good (such as merchandise that appeared to be used or damaged goods). Also, shopping in the malls, you can reject damaged merchandise on the spot. The packaging is a telltale sign of the item's condition and if the packaging is damaged, appears to have been opened/returned, or has the seals broken, I can reject the item on the spot and not take it to the register. Also, I dig through the shelves and look for the item with the best packaging.

I just wish we did not have that 6.25 percent sales tax.

i agree much with this. I can also see a display of the product i am considering and maybe even try it right there and hold it in my hand. Online i can't really do these things and website descriptions can be wrong or confusing. Then theres the shipping hassle. Want to use a PO box instead of it left on your porch / lawn expect a "we don't ship to a PO box song and dance". OK good you don't want my money either. Then stores like walmart play games like this item only online not available in stores. OK good i don't need it that bad either and will live without it. Unless its a custom item that i can't find in a store or a vintage item (ebay in that case) i will choose a brick and mortar store even if it costs a few more dollars i save on aggravation and if it doesn't work out i can exchange / return it.
Sammer
join:2005-12-22
Canonsburg, PA

Sammer

Member

Re: I prefer the malls

said by norbert26:

Then theres the shipping hassle. Want to use a PO box instead of it left on your porch / lawn expect a "we don't ship to a PO box song and dance". OK good you don't want my money either. Then stores like walmart play games like this item only online not available in stores.

I actually prefer when a store will allow me to shop online but will deliver (at no additional charge) my purchase to their local store. Also because I understand that no "brick and mortar" store can afford an unlimited inventory I don't consider it playing games when the inventory is virtually extended online.

jmn1207
Premium Member
join:2000-07-19
Sterling, VA

jmn1207 to IowaCowboy

Premium Member

to IowaCowboy
I simply can't pass up the savings and convenience of shopping online. With Amazon Prime eligible items, I can get the items shipped in 2 days or choose to pay $3.99 to have it sent overnight. I ordered a $2500 TV after researching my purchase late Thursday afternoon, paid $3.99 extra to have it delivered that Friday right to my front door. Love it! Newegg is another of my favorite shopping sites, with excellent service and speedy deliveries.

The overwhelming majority of my experiences with online purchases have been positive, and this goes back several years. That makes a big difference, to be sure.

DrModem
Trust Your Doctor
Premium Member
join:2006-10-19
USA

DrModem

Premium Member

Re: I prefer the malls

Yes, amazon prime is addictive.
PastTense
join:2011-07-06
united state

PastTense

Member

How Much Do You Save?

Anyone care to give estimates of how much they save? Frankly I think the numbers are way too high.
PastTense

PastTense

Member

Re: How Much Do You Save?

Any comments, please?

For example how do you get a 25% savings in food costs? It looks like you can get some non-perishables at about the same cost as the super market ($45 free shipping at Walmart, Amazon food subscriptions), but you would still have to make the same number of grocery trips--because grocery trips are determined by the need for perishables.

I suppose the article writer was thinking about all the great coupons you can get--but these coupons are seldom for basic foodstuffs for cooking from scratch.

So tell us; how do you do it?

hurfy
Premium Member
join:2002-08-06
Spokane, WA

hurfy

Premium Member

No savings here...

... it is all nullified by the cost of MMORPG subs

Exactly how much is "access to a deeper inventory of items" worth ?!?

The fact i pay alot more than they figure and make alot less probably changes the number a tad too.

Heck i probably spend more cause it is easier to shop
rdmiller
join:2005-09-23
Richmond, VA

rdmiller

Member

Kindle-mania

When is the last time a person with a Kindle went to a bookstore? Or a library?
Mele20
Premium Member
join:2001-06-05
Hilo, HI

Mele20

Premium Member

That's utter hogwash!

Shipping to Hawaii is prohibitive in cost, with few exceptions. So, shopping on line if you live in Hawaii is absurd. A tiny camera battery that costs $10 generates a $45 shipping fee. As for saving on taxes...no...never...Hawaii has ALWAYS taxed the internet. Anything that moves is taxed.

How does one save on gas by buying online? Who is home all day waiting for FedX or UPS? You have to get in your car and drive to their offices and pick up the item.

Besides, is everyone so cruel as to try and kill all local businesses? STUPID, STUPID. One should always support local businesses. Never shop online unless absolutely necessary.

There's also the great hassle factor if the item arrives in bad shape, used when supposed to be new, not as advertised, you simply don't like it, etc. It is very simple to return it to the local merchant and hell to return it to an online merchant.
elray
join:2000-12-16
Santa Monica, CA

elray

Member

Absolute Garbage

I suppose if you repeat a lie often enough...

Karl has run this story three times now.

One only need consider the source of the story to determine the validity of the "report" and its cozy survey methodology.
raybrett
join:2001-02-20
Saint Louis, MO

raybrett

Member

Fiction

That is an absolutely absurd claim. Not much else to say!