BS: 40% the magic rip off #

Subject: BS: 40% the magic rip off #
From: Donuel
Date: 08 May 07 - 11:34 PM

Brain experiments involving accepting or refusing various splits of 10 like 50-50 or 60-40 show that people will ussually accept being cheated at 70them-30you. Compared to an even split of 50 50 30 70 is like a 40% loss.

40% shows up a lot. 40% of the National guard equipment and manpower is out of the country. An increase of pump prices by 40% in a year are accepted without protest. 40% interest on credit cards is not uncommon.

People seem to accept being ripped off by 40% without a fight.
But when it goes to 60% (80 for them 20 for you) people begin to dig in thier heels. 90%    yada yada

So when business plans to rip you off they know you will do absolutely nothing up to and including a 40% con. Sure they can steal all the way up to 100% but that makes waves.

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maybe I'm right maybe I'm wrong but I bet dollars to donuts that there are corporations that have special departments to find these magic rip off ratios.

Subject: RE: BS: 40% the magic rip off #
From: Sorcha
Date: 08 May 07 - 11:37 PM

What are you on about? I guess I'm dumb but I don't see your point.

Subject: RE: BS: 40% the magic rip off #
From: Donuel
Date: 08 May 07 - 11:57 PM

Its a theory of mine based on some psych experients of how much of an incremental price hike people will blindly accept without protest.


People will accept price hikes up to 40% without a fight. ITs as if we are wired that way.

The price of gas for example will go up 40% because the prices are fixed by refineries controlling the supply AND marketers know that a 40% hike will meet no real resistence. SO it will happen.

Its like the magic number that keeps the frog from knowing he is getting boiled to death.

OF course in a free market certain monopolies will notice a drop in growth once most of their customers get priced out of the market at certain point.

Subject: RE: BS: 40% the magic rip off #
From: McGrath of Harlow
Date: 09 May 07 - 07:18 PM

The frog boiling thing is actually not borne out in practice. When the water gets uncomfortably hot, the frog hops out. Frogs aren't as dumb as some people think. Or as dumb as some people, for that matter.

Subject: RE: BS: 40% the magic rip off #
From: AWG
Date: 09 May 07 - 07:40 PM

40% credit cards !! What the heck company is that ?? I'd be switching to Capital One. :)

Subject: RE: BS: 40% the magic rip off #
From: skipy
Date: 10 May 07 - 03:39 PM

Roger Ford.
Skipy

Subject: RE: BS: 40% the magic rip off #
From: Ebbie
Date: 10 May 07 - 04:47 PM

40% credit cards?? It may not be uncommon where you live but I've never heard of it. 10% would be bad.