Discount hurdle - Ask a question

The author shared a real-life story that a few years ago, he had visited another city to attend a conference. Before departing, he had made a reservation in a hotel. As he was checking in, he noticed a sign behind the receptionist saying, "Ask about our special rates.". Curious, he asked and was told he could have the room at 25% off his room rate!

The hurdle he had to jump to be eligible for that discount was to ask a simple question. Yet, he found from the receptionist that most guests did not bother.

A discount hurdle is effective from the seller's point of view if the potential buyers who are highly price sensitive (and probably would have walked away if not for the discount) find the hurdle easy to jump, while others who are not sensitive to price find it hard or simply not worth their while.

The special rates were probably meant to attract walk-in guests, but the hotel applied the discount also to guests who have made advance reservations. Some guests may find it unseemly to ask about the special rates, or they could be business travellers using company accounts.

If asking a simple question can give you additional discount, why should we quietly pay the full price? So the next time you dine at a restaurant, before you whip out your favourite credit card (or cash) to pay for the meal, do ask politely, "Are there any promotions for use of any credit cards?". Different banks may have different dining privileges for use of their credit cards at different places.

Why do kamikaze pilots wear helmets?

During World War II, kamikaze pilots attempted to crash their explosive-laden planes into American warships. This meant almost certain deaths for the pilots. So why do they still wear helmets?

- In some instances, the pilots may survive the crash

- The planes may experience severe turbulence before reaching their targets

- Sense of identity: Pilots wear helmets. Kamikaze pilots are Pilots. So Kamikaze pilots also wear helmets.

- It is not the intention of the pilots to commit suicide. There is always a hope the pilots would return alive although the expectation is low.

Why do 24-hour shops have locks in their doors?

If the convenience stores open 24 hours a day, 365 days a year, why do their doors still have locks?

- During periods of emergencies (eg: flood), the store may need to be temporarily locked

- Most manufactured doors come with locks. It will be more expensive to install customised doors without locks in these stores.

Why is there a light in the fridge but not in the freezer?

Cost of installing a light in both compartments which comes on when you open the door is the same. Benefit of having the light makes it easier for you to find things.

As people open the fridge more often than the freezer, benefit of having the light in the fridge is larger. To save Cost, light is only installed in the fridge compartment.

For the privileged few who may want light in the freezer compartment, some premium refrigerators now come with this feature at a premium cost.

Why is milk sold in rectangular containers, while soft drinks are sold in round ones?

After reading the answers in the book, this is my summary and understanding..

- Milk containers are rectangular in cross-section so you can pack them closely with lesser unused space, unlike round containers.

- Milk containers need to be stored in refrigerators (hence the need to be packed closely as space is a premium in the refrigerators), while soft-drinks can be stored in open shelf.

- Soft drink cans are in round containers because it is easier to hold in the hand when drinking direct. One seldom drinks milk directly from the container.

- Cylindrical shaped containers are better able to withstand the pressure built-up from carbonated drinks.

The Economic Naturalist - Robert H Frank

This book attempts to explain some intriguing questions with economic principles, explained in layman term. The Cost-Benefits Principle appears as a base in Economics.

In my own view, the Cost of reading this book is Time, which could be spent doing many other things. The Benefit is an understanding of why some things happen the way they are, and with this understanding, take advantage of some "hurdles" set in this bad economic times to achieve some savings.

There are more than 120 intriguing questions in this book, but I will not feature more than 10 in this blog, so you can still enjoy reading the book.

Feel free to share your own "conspiracy" theories in the Comments and we may understand the situations better. :-)

Not about nostalgia

"Pepper, I've been called many things. Nostalgic is not one of them" - Iron Man (2008). :-)