Sharing Daily Discoveries About Personal Finance And Business Topics

Making It A Little or A Lot Cheaper

financial planning

Happy new years everyone. It seems like here there is a lot of fees are going up when it comes to provincial stuff such as income taxes and even various things like pubic transportation getting more expensive. Of course this has a lot of people saying how that isn’t good for the economy and such. One thing that this made me think of is the public transportation price and how I remember a quote before of someone saying compared to a car you are getting a bargain for what you pay. Therefore the small increase shouldn’t matter much.

It made me think because if you are trying to lure people into using it more from a financial point of view isn’t it better to make it a lot cheaper as opposed to just a little? I know the argument is usually that people are willing to pay so many dollars for another thing anyways so you would think they shouldn’t be apprehensive if you price it similar except a bit cheaper. I personally think that only really works if what you offer is in a sense exactly the same thing. Example, people that run a barber shop where if everyone else is charging $10 per cut then realistically you can say you can undercut it by just a little. However, saying like because people are willing to pay $12 to watch one movie in the theatres means that people should be contempt to pay $10 to order one movie on their TV as it is a bargain in comparison doesn’t work the same I think.

I would be inclined to say there you would need to make it a lot cheaper as it is not the same. Either way guess people will have to adapt to the increases since these are more of an essential service of sort as opposed a non essential.

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