I dropped my mum off at the airport in Sydney this morning then immediately drove back to hospital in Newcastle. Made it half an hour late but oh well. A few days ago, we were up in the blue mountains and this is what we saw...
However, we were also lucky enough to see this.
And another thing that caught my eye was this.
50% discount. Permanently printed on the signboard. I’ve seen “discount” shops like this around Sydney as well.
My question is that if it is forever 50% discount, can it be considered a discount? Most shops just mark up the price by 50% then give you a 50% discount so that consumers get the perception that it is a bargain when in actual fact it is just normal price.
Once in Malaysia, there was a departmental store that had a promotion; for 10 minutes, you get an additional 20% for anything you can grab and pay for. Sounds good right? But if you visit the same departmental store in a different suburb, everything is marked down an additional 20% for the entire sale period. So in that 10 minute spending spree, they effectively got people to purchase things impulsively without hurting their margins. Clever.
This whole discount thing then brings me to another thing. Stimulus packages. To a certain extent, they help but if not careful, they can cause horrible horrible inflation. Think about it, if you give everybody 1000 dollars to buy a car, everybody is suddenly 1000 dollars richer and the car salesman knows that he can now charge you 1000 more for a car. If not 1000 dollars at least a few hundred dollars.
I know there are many different ways that stimulus packages are designed but what do you think about them? Do help boost a slow economy? Do they work? Or do they just cause inflation and do absolutely nothing for the economy. Do drop me comments or emails I look forward to reading them!