Earlier quoted context omitted.
There were mentioned studies in the book "Influence: The Psychology of Persuasion" that mirrored what your parents experienced. Long story short, a jeweler was trying to move some turquoise and told an assistant to sell them at half price while she was gone. The assistant accidentally doubled the price, but the stones still sold immediately. Turns out there's a phenomenon where humans automatically associate price to…
Same for brown diamonds.
I Charged $18k for a Static HTML Page
261–270 of 458 posts
Re: I Charged $18k for a Static HTML Page
#262Earlier quoted context omitted.
But also, charge accordingly, if you don't have to post your prices (as your parents probably did). A lawyer is likely willing to pay a lot more for the same website than a tailor shop, and I'll gladly take both of their money.
The term is price discrimination. Offering coupons through the mail, online ad codes etc. You are reaching out to different demos using different marketing techniques and offering or not offering discounts accordingly.
Re: I Charged $18k for a Static HTML Page
#263Re: I Charged $18k for a Static HTML Page
#264Earlier quoted context omitted.
You just restated the problem in more detail. What I'm asking is, if the above system encourages managers to waste money, why hasn't anyone come up with a better system?
I think the disconnect is that you are describing it as a system, when in reality it's just a bunch of misaligned incentives and plain old human nature. It's unfixable.
Re: I Charged $18k for a Static HTML Page
#265Earlier quoted context omitted.
The term is price discrimination. Offering coupons through the mail, online ad codes etc. You are reaching out to different demos using different marketing techniques and offering or not offering discounts accordingly.
Or just show different prices to different users. Iphone users usually pay more.
Re: I Charged $18k for a Static HTML Page
#266Earlier quoted context omitted.
You're right, at least in the case of highly regulated markets and when the state creates artificial monopolies (e.g. electricity). I'll correct my original comment then: At least private companies that compete in a relatively free market are losing their own earned money when they're inefficient, not someone else's.
It’s still not right. Private companies are losing money on behalf of their owners or shareholders.
Re: I Charged $18k for a Static HTML Page
#267My parents had been running their own tailor shop in the 80's, barely making ends meet, pulling in less than $20K a year. It wasn't for lack of business, father was a master tailor trained in Italy and capable of elite bespoke craftsmanship. They had as much business as they could handle. The problem was that they were charging what they thought the work was worth rather than what their customers were willing to pay.…
Welcome to marketing!
Re: I Charged $18k for a Static HTML Page
#268Earlier quoted context omitted.
I'm gonna disagree that hourly billing makes no sense for the contractor. He clearly just didn't charge enough per hour; $75/hour is way too low for contract work, and his $21k could have been $56k at $200/hour. What if the project was billed at a fixed cost, he negotiated $21k, but the project took a year to complete because the company moved so slowly? That'd be a terrible salary. He'd have to quit and somehow bill…
> What if the project was billed at a fixed cost, he negotiated $21k, but the project took a year to complete because the company moved so slowly? Simple: Charge $21k per month. If the company drags it for a year then you make $252k.
The granularity here is entirely arbitrary. Hourly billing is by far the industry standard. That's why we default to it. It's easy to justify in court, it's easy to reason about contracts which use it.
Re: I Charged $18k for a Static HTML Page
#269My parents had been running their own tailor shop in the 80's, barely making ends meet, pulling in less than $20K a year. It wasn't for lack of business, father was a master tailor trained in Italy and capable of elite bespoke craftsmanship. They had as much business as they could handle. The problem was that they were charging what they thought the work was worth rather than what their customers were willing to pay.…
For example say I want some shelves built. If my shelf-builder charges $X that's fine, but what if I would happily pay $2X?
On the one hand, I might be personally miffed to know I'm paying 2X instead of the X someone else is paying. On the other hand, I'd probably be the more satisfied customer if I don't know (or have the discipline to ignore) the price gap, because the shelf-builder is probably going to give extra effort in hope of getting more jobs from the 2X clientele.
It would be interesting to explore what would make your 2X client feel good even if they know they are paying double. And would that scale to 4X or 40X clients?
Re: I Charged $18k for a Static HTML Page
#270I used to live with this guy when we were studying. He got himself a job with the largest DIY retailer in the country.It was an office job with a relatively good salary. Eventually I moved out nad only saw him again after half a year or so. I asked how's the job to whoch he replied thst he quit after 3 month.I asked why..He said he used come to the office every day and ask around if he could help with anything.. Ever…
The early winners of the UK Apprentice were awarded £100k jobs as a prize, which didn't actually entail doing anything, because the only reason they had been created was as a prize for winning a TV competition. One of them sued for 'constructive dismissal' on the basis she felt that not creating any work for her was an attempt to force her to quit. She lost, presumably on the basis that most people given nothing to d…