might as well write something practical, right?

ok then.  now that it’s the holiday season, we go to stores, watch ads, or even read through brochures to see if we can get something for a bargain.  what’s the best word ever known to advertising?  no, it’s not “free” (and some sophisticated shopper can debacle with me over that), but it’s the word “because.”  i’m not going through some in-depth harvard study on why this word was so powerful that it can psychological persuade people into doing things without hesitation, but we will have to go for the second contender, the latter if you will; the word free.

folks, it’s not really free.  there’s no free lunch (based on economics).  the best things in life are free (and yes, i believe that).  and buy this and get something free.

what?  buy 2 dvd’s and get 1 free??!?!  are you kidding me?  that sounds like a good bargain.

hold up, cowboy.  did you ever think of the words ‘discount’ and ‘surplus’ and ‘present value’ and all that good stuff?  i believe it’s actually a discount of something that they want to take off their inventory before they get the new goods coming in.

but what am i getting at here?  i really want to talk about that wonderful word called discount (jeez man, did you have to drag our eyes to a nonsensical intro just to get to this?  cut to the chase)  (brutha, it’s my blog and i can do whatever the heck i want, grab some more gin and tonic if you like.)

i never really thought of discount as something that is the present value of a product if someone were to neglect the fact of what this product may cost in the future.  they said that:

future value = discounted price (1+rate) ^number of periods

wherein discounted price is equal to the present price tag and rate is equal to the sales tax

so if i buy an ipod nano for $195 today?  does that mean today’s value was just a discount of the future value of the merchandise? 


duh, i think there’s such a word called depreciation, and it applies to cars, furniture, and anything that goes down with value over the years.  you can include amortization too.

so much for leading you to somewhere (nowhere), ladies and gentlemen.  this guy’s creative juices have just gone down the drain… for now.  (now i thought i was getting somewhere here.  i believe it only works for some aspects of investment, not shopping)  knowing is half the battle, i guess. (g.i. joe statement)


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