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	<title>Comments on: Is this where Apple &amp; EMI got the 30% number?</title>
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	<description>Using mobile devices since they weighed 30 lbs.</description>
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		<title>By: DBL</title>
		<link>http://jkontherun.com/2007/04/02/is_this_where_a/#comment-24568</link>
		<dc:creator>DBL</dc:creator>
		<pubDate>Tue, 03 Apr 2007 02:45:41 +0000</pubDate>
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		<description>&lt;div xmlns=&quot;http://www.w3.org/1999/xhtml&quot;&gt;&lt;p&gt;30% is one of those mathematical &quot;sweet spots&quot; that is created by the human perception of numbers. This perception puts a &#039;snapping effect&#039; on prices, so that 40% sounds like 50%, which sounds like a hefty raise. &quot;50% increase!&quot; never sounds like a lowball, and 40% gets chucked in the same bucket because it&#039;s easier to think about it that way. So the perceived difference between 30% and 40% is a lot more than the perceived difference between 40% and 50%. Same thing happens with 10% (sounds like nothing, pocket change, sales tax, etc.)&lt;/p&gt;

&lt;p&gt;20% and 30% tend to group together and people tend to perceive those as nearly the same as well, and think of them both as in the &#039;modest&#039; range. So that&#039;s the sweet spot, and the manufacturer is going to choose the higher of the two numbers since it&#039;s a perceptual freebie.&lt;/p&gt;

&lt;p&gt;As a result, 30% over-and-above price (above $10, above $1, above 100%, whatever) are disproportionately represented and I think this is a pseudo-coincidence caused by two retailers each playing out similar logic about user perception.&lt;/p&gt;&lt;/div&gt;</description>
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<p>30% is one of those mathematical &#8220;sweet spots&#8221; that is created by the human perception of numbers. This perception puts a &#8217;snapping effect&#8217; on prices, so that 40% sounds like 50%, which sounds like a hefty raise. &#8220;50% increase!&#8221; never sounds like a lowball, and 40% gets chucked in the same bucket because it&#8217;s easier to think about it that way. So the perceived difference between 30% and 40% is a lot more than the perceived difference between 40% and 50%. Same thing happens with 10% (sounds like nothing, pocket change, sales tax, etc.)</p>
<p>20% and 30% tend to group together and people tend to perceive those as nearly the same as well, and think of them both as in the &#8216;modest&#8217; range. So that&#8217;s the sweet spot, and the manufacturer is going to choose the higher of the two numbers since it&#8217;s a perceptual freebie.</p>
<p>As a result, 30% over-and-above price (above $10, above $1, above 100%, whatever) are disproportionately represented and I think this is a pseudo-coincidence caused by two retailers each playing out similar logic about user perception.</p>
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