Discounts

Imagine you are in a mall. You go to a department store. You see many kinds of things. Some of them are interesting but the others not. But, what is "really interesting"  is that there are eye-catching signs. "25%", "30% discount", "up to 80% off", and many others; those are what the signs show.

Discounts are a way to attract people to buy products or services. You can save some money and spend it on anything else. (That's what I know. Please forgive me, I'm not marketeer.)

Item: Watch
Normal Price: $50.50
Discount: 30%
Price After Discount: $35.35

Yeah, cool! You can save $15.15. You can buy two copies of Raptor Red, one for you and one for your mischievous brother. Is it good? Yes, it is. Is it always good? The abrupt answer is NO.

Why? The answer is related to my article Need and Greed. The mistake that people sometimes (or often?) make is that they are tempted to buy discounted things because there are discounts. If you think about it, it makes no sense. The fact that there are discounts is not a good reason why you buy things. We buy things
because we think those will be useful for us, because we will use them for our good, because they will affect our lives well, because they will bring about good effects to us.

If you buy a thing with an original price of $10 at a reduced price of $8 without the right reason, actually you do not save $2; you throw away $8 instead.

Laura: "Brian, look at the T-shirt!"
Brian: "Oh, what's wrong with it?"
Laura: "It's so cheap! There's a 75% discount! It's just $10 now! Get it!"
Brian: "Oh. Thanks, Laura, but I have plenty of clothes at home. :) Laura, you look thirsty. Why not drink an orange juice? I'll treat you. :)"
Laura: "Ah.. Sure.. Thanks, Brian. :)"