Thread: Best Bang for your Buck
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02-17-09 17:46 #33
Posts: 374Dan Ariely Takes on 'Irrational' Economic Impulses
Not a lot to do with the price of pussy, but an interesting study of the human condition.
Dan Ariely: classic economic models assume that people act rationally, in their own best interests. Ariely begs to differ. He says we're creatures of impulse, who waste money, underestimate risks and procrastinate. If you are hurting for entertainment:
http://www.npr.org/templates/story/s...oryId=89233955
http://www.nytimes.com/2008/02/26/sc...tier.html?_r=1
http://fora.tv/2008/12/13/Dan_Ariely...ior#chapter_01
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02-17-09 17:35 #32
Posts: 1657My sentiments exactly.
All the faux concern for " poor argentinos and their wayward practices, why can't they just take my advice and charge me less " is pretty transparent.
Nobody gives a shit if an Argentinian restaurant goes out of business. They only care about getting a cheaper steak while on vacation.
But if you reverse the proposition on them, not one of them would offer their services to you, the board or " visiting Argentinian tourists in the US " at a " discount ".
Let's be honest, everybody here is looking out for Numero #1, nothing more and nothing less. That is why I put little stock in most opinions posted on the board.
Regards,
BM.Originally Posted by Stan Da Man
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02-17-09 17:13 #31
Posts: 474New Theme
Originally Posted by BadMan
The chicas are charging too much; the boliches charge too much; the privados charge too much; the restaurants charge too much; those who let apartments charge too much; the masajistas charge too much; etc. Ad nauseam,
Or, it's the obverse: They all provide poor service in some way, shape or form when compared with what they charge.
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02-17-09 17:07 #30
Posts: 1657I agree with alot of what you are saying. This is more general commentary.
The problem I have noticed with lowering costs (overhead costs) in a hyper inflationary economy like Argentina, is the costs of doing business and the costs of living continuously go up.
I guess what I meant is that cutting prices is only viable if you can actually cut costs (overhead costs) first. And in the reality that is Argentina, this a very hard thing to do.
I am sure you understand this, having lived and done business here for many years.
Regards,
BM.Originally Posted by El Queso
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02-17-09 16:08 #29
Posts: 552
Venues: 8Originally Posted by BadMan
The issue that should force prices down is the lack of demand, which is what the current situation is under. It's a different story, I think, when you are talking about competition related to breaking into an existing market, versus competition from fall of demand in an existing, established market.
Look at the price of oil as a prime example. That is the same thing that should be happening to just about everything when the demand falls. The price of oil is causing me a problem because one of my biggest clients is very concerned about the price of oil in relation to their profits and are cutting expenses.
Originally Posted by BadMan
Originally Posted by BadManOriginally Posted by El Queso
Originally Posted by BadMan
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02-17-09 15:28 #28
Posts: 1657This is your perception. Sometimes prices go up because demand goes up.
Lowering prices is one strategy, I have already said that. I have also clearly stated " discounts " and " specials " aren't a bad thing.
There are much better ways to increase business. Lowering prices is just easy, and takes little effort or thought.
Also note, you said " lowering costs " and not specifically " lowering prices ".
Two completely different things.
Regards,
BM
Btw, I just got some poon so I'm not so pissy anymore.
Originally Posted by El Queso
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02-17-09 13:53 #27
Posts: 552
Venues: 8As a business man who runs a service-oriented business, I have to say that I'm not understanding why there is an argument here. Daddy Rulz is making good sense.
Fall of demand causes businesses to scramble for what is left of the demand. The most common way to compete is to lower prices to make buying your services more attractive. Obviously, prices can only go so low - even service-based (as opposed to product-based) businesses can only go so low in their prices before rent can't be paid, etc.
Bad Man, I don't understand your arguing from a point of "those that advocate them, do so for others. My main point was to have the advocates take their own advice." It just seems like a a non-argument.
Anyone who wants to keep business and keep up (at least) with their competitors should be cutting costs where they can, probably cutting their rates as well, and hope that that will actually attract some of the remaining business that exists.
I am considering doing the exact same thing to make my services more attractive than my competitors in a time when people can't afford to spend as much.
Of course no one wants to get paid less, but desires and reality often conflict. Those who do not adapt go out of business. Sometimes even those who try to adapt still go out of business.
Looking at how "economics" functions here and talking about how strange it seems that, for example, prices go up to cover lost business instead of some other method of bringing in more business (even, if necessary, at a lower cost) does not seem to be others advocating something that they are unwilling to do for themselves, but rather something that is discussion-worthy for its mysterious concept.
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02-17-09 13:19 #26
Posts: 1657Semantics.
My main point is the same.
I am not saying " discounts " or " specials " are bad.
But those that advocate them, do so for others. My main point was to have the advocates take their own advice.
Regards,
BM
Originally Posted by Daddy Rulz
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02-17-09 13:01 #25
Posts: 2808Sure
Originally Posted by BadMan
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02-17-09 12:58 #24
Posts: 1657Me too.
I just find it funny. Because in the end it is true. Everybody wants to pay less, but no one wants to get paid less.
Regards,
BM
Originally Posted by Daddy Rulz
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02-17-09 12:47 #23
Posts: 2808Hoping this is a rational respectful conversation
Originally Posted by BadMan
In your business if suddenly in the next 6 months your occupancy rate fell to 50% or lower wouldn't you do something to adjust to that market condition? Would your answer be to raise prices? Knowing you I suspect you might offer a free day, perhaps figure out some extra personal services you could provide your customers, maybe start throwing in some tango shows or something. But you would recognize the problem and do something to address it besides raising prices, you would first think to add value no?
Again not busting ass, just having a reasoned discussion.
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02-17-09 12:36 #22
Posts: 2808lol
Originally Posted by BadMan
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02-17-09 12:23 #21
Posts: 1657Originally Posted by Daddy Rulz
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02-17-09 12:21 #20
Posts: 1657So in your opinion, because of the global economy, everybody should be cutting prices?
Does this mean I will now ask my lawyer, doctor, and accountant for a " discount " because of the bad economy?
Should they be halving their hourly rates in order to drum up more business?
I think every one wants to pay less, but no one wants to get paid less.
In the end people should worry about their own wallets. It is easy for me to say " lower your prices ", but would I do the same?
Regards,
BM.
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02-17-09 11:51 #19
Posts: 2808Originally Posted by MCSE