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Old 11-16-2007, 12:20 PM
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Don't forget about the psychological factor of their advertised low kit price of $16k (or something like that). This is a great hook for new buyers, and it seems profitable for FFR. However, when you go to sell an FFR the first thing a new buyer is going to think about is that pervasively advertised $16k starter kit price---that sets the anchor price, and everything else after that will be judged by that number. "So, you want $50k for an completed FFR? But, jeez, the KIT only cost $16k..."

This effect (not on FFR's but in general) was studied extensively by Kanneman and Traversky (I think I got the spelling correct) at Stanford U.
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