Tuesday, March 10, 2015

Lose money if don't buy

  There are too many people obsess with "price-performance". The psychology behind is solely greed. A Chinese idiom said:"Greed results in poverty" . The Chinese character of "Greed"(貪) and "Poverty"(貧) looks so similar that makes this wise idiom more meaningful.

  One year ago, a well-known Chinese technology company announced a smartphone called redmi. It was a mediocre smartphone without any revolutionary features but sold at amazingly low price. It came with 1.3GHz quad core CPU, 1 GB RAM and 1280*720 high resolution display. Smartphone of other brands with similar specifications were sold at $2000 HKD while redmi was only $1100 HKD. Everyone became crazy and rushed to the online shop and snapped them all within 1 minute. Then they faced a problem. As redmi was just a medium to low-end product, how they use it when they already have had a high-end smartphone? They produced many reasons. They bought red-mi for their parents. They bought red-mi as their backup smartphone and even as a wireless router! It was so funny that they wasted money on a smartphone that is not as good as their own one.

  As a customer, we always wish to pay less and get more. While for crazy sales, it is one step forward. Pay less means earn more. We get hard-earned money from our long hours daily job, and therefore we all want to make easy money. How come buying low-price stuff in a crazy sales will induce a feeling of making money? For a smartphone is worth $2000 HKD selling at $1100 HKD, if a customer don't buy it, he thinks as if he loses $900 dollars($2000-$1100). On the other hand, he can "earn" $900 dollars if he buys it. He replaces his $1100 notes with a smartphone equivalents to $2000. That means his possession is raised by $900! Everyone hates losing money and loves to make easy money very much. Right? Therefore it is a great temptation to do it. They create many reasons to rationalize it.

  My mother also buy lots of groceries because of that. Her buying reason is simple:"We will use them in one day!"

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