Curious, wonder why that is. I suppose, like me, a lot of people are trying to make their money last a long time in order to be able to stay here. Can't blame them, but there are sure lots of people dropping loads of dollars at Patrona, and if I could get just 5% of that business I'd be singing all the way to the bank.
I find it hard to understand what people pay for. Like $60 or more (locally) for a one hour massage that isn't really all that big a deal when it comes to capital investment or training. I'm happy if I get a $30/hr margin on my work, and that's paying off a $100K investment in space and equipment. (The only way I can make this work, BTW, is to just ignore capital costs and focus on the margin. If I'd had to borrow to do this, I'd be sunk pretty fast! But that's OK, it's part of the plan.)
I think part of the trouble is that people are so used to hidden, gimmick-laden pricing that transparent no-strings-attached pricing looks "expensive". When they don't have to pay 3x retail for wine, or add on taxes and tips, or the psychological gap between $9.95 and $10, wise people know they're getting a bargain, but the dull majority lets their lizard brain rule their wallet so they don't even recognize a good deal when they see it.
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Date: 2009-06-14 08:50 pm (UTC)I find it hard to understand what people pay for. Like $60 or more (locally) for a one hour massage that isn't really all that big a deal when it comes to capital investment or training. I'm happy if I get a $30/hr margin on my work, and that's paying off a $100K investment in space and equipment. (The only way I can make this work, BTW, is to just ignore capital costs and focus on the margin. If I'd had to borrow to do this, I'd be sunk pretty fast! But that's OK, it's part of the plan.)
I think part of the trouble is that people are so used to hidden, gimmick-laden pricing that transparent no-strings-attached pricing looks "expensive". When they don't have to pay 3x retail for wine, or add on taxes and tips, or the psychological gap between $9.95 and $10, wise people know they're getting a bargain, but the dull majority lets their lizard brain rule their wallet so they don't even recognize a good deal when they see it.