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Are people as dumb as they are on tv?

  1. May 21, 2005 #1

    Pengwuino

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    Ok so im *barf* watching Friends and one of hte chicks is following a stuck and it went up $2 one day and she goes "im gonna invest my whole $157!". She then calls 411 and goes "Can i have the number to the... stock.... selling... store". Now this made me wonder... are people this stupid in real life in general? I was wondering if people were dumb enough to do... well, for example losing a lot of money in the stock market because they buy high and think "oh its going up so it has to go up more!" or buy cuz someone said something or because the stock symbol is the same as their name pff. So really.... are people as dumb as they are in tv shows lol.
     
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  3. May 21, 2005 #2

    cronxeh

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    short answer: yes.
     
  4. May 21, 2005 #3
    My answer is no.

    People in real life are WAY dumber. Especially my german class, weird people I tell ya.
     
  5. May 21, 2005 #4

    Pengwuino

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    See, whenever I see a statistic "Some % of people fail when they try to..." about something and its a high % and i think "dang... i guess i shouldnt even try since statistics show ill fail most likely..."
     
  6. May 21, 2005 #5

    Moonbear

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    Yep, some people would invest a lot more than $157 on a lark. It doesn't seem like that much to invest (and unless you're buying $5 stocks, it's not going to get you much either) for a silly reason. Afterall, a lot of people would consider it reasonable to gamble at Las Vegas or Atlantic City with that amount, which they are willing to lose for a night of fun. So, instead of gambling in a casino, why not gamble on a goofy stock? You don't bank the kid's college fund on it, but if you've got a little you can afford to lose, sometimes it's fun to just play. You probably have better odds in the stock market than in the casino.
     
  7. May 21, 2005 #6

    Pengwuino

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    The woman only had $157 in her savings (even stupider... investing money you CANT lose) on the show.
     
  8. May 21, 2005 #7

    Moonbear

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    Oh, well, I was never a loyal follower of Friends, so didn't know the episode. Yeah, if you're cleaning out your savings, the stock market isn't the place to invest. Then again, which part surprises you more, that she would clean out her savings on a bad stock tip, or that she only had $157 in savings in the first place? There are people who would fit both categories. (Oh, this wasn't the character Phoebe, was it? She's supposed to be the ditz on the show.) There are a lot of people who literally live paycheck to paycheck with nothing left in their savings, mostly because they don't know how to manage their money. They are also the ones who will spend their last dollar on a lottery ticket every week.
     
  9. May 21, 2005 #8

    Pengwuino

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    no it was the blonde... err... the blonde who isnt pheobe or however u spell it.

    I wonder how dumb people are in real life though.... this whole idea that like, 75% or somethign like that, small businessse fail in teh first year? I feel so ... how would you say it.... not confident in getting my business out into the public with a shop and online site because of that statistic lol. Im hoping people are stupid in like, getting $1200/month spots to lease or keeping way too low of profit margins or not advertising at all ... and thats why they fail... cuz im avoiding all of those :D.
     
    Last edited: May 21, 2005
  10. May 21, 2005 #9
    I remember that episode, it was Monica. but she's not blonde, are you sure you remember correctly? Phoebe is the only (main character) blond on the show.

    And are people that dumb?
    A: Dumber. My old junior high teacher (teacher! This person teaches our young!) didn't know how to use an ATM.
     
  11. May 21, 2005 #10

    Pengwuino

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    See thats how much of a fan im not. I forget what color her hair was 20 minutes after watching the show.
     
  12. May 21, 2005 #11

    honestrosewater

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    I'm no expert, but when I looked into this, I found most such businesses failed for one reason: weak or no business plans. You have a business plan, right?
     
  13. May 21, 2005 #12

    Moonbear

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    Oh, Rachel. Yeah, she's not a really bright character either. ...Come to think of it, other than Ross, are any of the characters supposed to have any intelligence?

    Haven't spent much time in real life lately? :tongue2: Lots of dumb people out there. This is why some of us keep saying privatization of social security is a bad idea, because far too many people are incapable of making those sorts of decisions for themselves.

    Most small businesses are going to operate at a loss their first year or two. There are initial outlays in cost that are one-time expenses (buying all the stuff that goes inside a store, like shelving, counters, cash registers, computers, remodeling, etc.) and it takes time to build a customer base, unless you're really lucky and just hit the right location with the right product at the right time. If you can weather the lean years, then you have a shot at succeeding. I think too many people go in knowing what they need to invest initially, but don't factor in operating at a loss for the first few years in business, and just give up after the first year when they realize they are operating in the red.
     
  14. May 21, 2005 #13

    Pengwuino

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    See, im not sure. I havent really been able to find much help on what truely constitutes a "business plan".
     
  15. May 21, 2005 #14

    Pengwuino

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    I always see people do stupid things or act stupid but i think "ok... well... maybe there just anomolies and dont really represent people in general". And i thought the money from privitization would be given to investment companies... id trust them, they have a good real rate of return. If the idea is to give it to the general public to invest 1 by 1... might as well give a 3 year old a loaded .45 then :D
     
  16. May 21, 2005 #15

    Moonbear

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  17. May 21, 2005 #16

    Pengwuino

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    Ouch, its the UK... some of these things are british institutions though...
     
  18. May 21, 2005 #17

    Moonbear

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    The general concept should be the same. Useful for figuring out the types of things that should go into a business plan, even if some of the specific examples are UKish (that's brewnog's term, and I kind of like it...more fun to say UKish than British :biggrin:).

    How about a Canadian site instead of a UKish one?
    http://www.cbsc.org/ibp/doc/intro_bp.cfm

    These sites make it sound like the business plan is mainly intended for prospective investors, though there are components that would be useful for yourself to consider even if you are not going to need investors, because it will ensure you've planned ahead for various conditions. That first site, for example, talked about a financial analysis that accounts for seasonal fluctuations in business...good to remember that people don't buy at a steady rate year round. In the U.S., there are those increases around Christmas and after tax rebates come back in April, back-to-school shopping in August/September, but then lulls early in the year when everyone is already broke from the Christmas shopping. Of course this would be different depending on what you're selling. But the business plan helps you identify when to scale back on inventory, and when to stock up, for example.
     
    Last edited: May 21, 2005
  19. May 21, 2005 #18

    Pengwuino

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    lol crap, a lot of this stuff doesnt really apply. A lot seems to be about keeping customers continually coming in when my business is selling computers which is a rather big decision that only comes along once in a while... but then again after that once in a while, they may 'repeat' :D I dunno lol, this is hard :( *cries*
     
  20. May 21, 2005 #19

    Moonbear

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    Yeah, that's the point, you have to customize the plan to your business. So, have you accounted for warranty issues, replacement of defective parts, will you do any service or tech support related to the purchases, or will you defer that to the manufacturers? Will you be prepared for the back-to-school and Christmas higher volume business? Will you have employees? If so, how many? What salaries will you offer? Benefits? What overhead expenses will you have? Phone bills, electric bills, internet access bills? Does your profit margin account for the fees for accepting credit cards? If someone returns a defective computer, or returns it for any reason, will you have the savings to refund their money? What will you do with those defective items? Can they be returned to the manufacturer, or will you sell them as refurbished, or will you sell them as-is at a clearance price as a damaged item?

    Yep, it gets complicated quickly. I'd recommend getting some assistance on it.

    Anyway, don't mean to hijack your thread about stupid people with discussion of smart business practices. :tongue2: (Oh, and just ask Ivan, yeah, it's intimidating to start your own business...that's probably why a lot more people don't do it.)
     
  21. May 21, 2005 #20

    Pengwuino

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    I was hopen it would jump to this topic anyways :D Plus i wanted to rant about friends anyhow lol.

    Im going to offer 90 day plus optional (purchasable) 1 or 2 year warranties. Tech support will be like, call us up whenever we're open :D. Probably wouldnt be prepared with stock... but id be able to acquire a good deal of money immediately ($50k probably immediately) to get the stock if high orders come through. I'd have 1 employee paying minimum wage :P Or well... probably a lil more then minimum wage like $8/hour. No benefits yet... im so small :D. I have accounted for phone and utilities nad internet costs. Profit margin does account for credit card service fees. If theres a return, i'll just re-sell (ebay... if it was a return for no reason, sell it new on ebay, if there was a problem, refurbished on ebay). Would have the money for refunds... Im sitll not sure about returning defective equipment to my distributor though. It wouldnt hurt at all if i could exchange for a working piece of equipment because thats simple... but if they dont let me (which i think is the case because their policy is complicated as hell it seems) then i'll just need to hope that the money from optional warranty service will make up for the costs of getting the new equipment in the few systems that do screw up. I'm using quality as hell parts though to cut down on this possibility though. Good for customer... GREAT for me lol.
     
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