The relativity of values causes us to use money irrationally. I go to the supermarket to buy a $15 pen, and the clerk smiles and says, “You can buy this pen for $7 if you walk 5 minutes from here.” Then, most people walk five minutes and buy a $15 pen for $7. But if you want to buy a $1,000 jacket and the clerk smiles and says, “You can get a $992 jacket in five minutes from here,” most people simply buy the $1,000 jacket. Reasonably, walking for 5 minutes equals the effort, and the profit of $8 is the same. However, people might go to a store that sells pens cheaper, but not for the jacket, because the discount rate is too low. In other words, the relativity of comparing values makes us act irrationally. The pen’s discount rate is 55%, and the jacket’s is only 0.8%. Yet, the total amount is the same for all $8, and the effort to gain that profit is identical. Attitudes and misconceptions about consumption influence how we build wealth. - Joseph’s “just my thoughts”
When you bleed, the blood comes into contact with the air, it changes from a liquid to a jelly, and then from a jelly to a solid scab. This inherent property of a substance is called its "physical property". If the properties of blood do not change from liquid to jelly and then to solid, people will die from excessive bleeding to death. Thus, physical properties are quite important to our life phenomena. The properties are almost everything in the business of food and chemical products. We can do our business although without an understanding of the properties. But if we cannot understand, or do overlook them, even a coffee shop can't expect to win the competition. So start by understanding the properties. - Joseph’s “just my thoughts”