Author Topic: Amazon Dirty Scam  (Read 373 times)

ukgimp

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littleman

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Re: Amazon Dirty Scam
« Reply #1 on: August 08, 2019, 11:15:30 PM »
He was probably wondering how long he'd be able to get away with it.

ergophobe

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Re: Amazon Dirty Scam
« Reply #2 on: August 15, 2019, 06:37:04 PM »
One of the things I think about a lot is the "trust dividend" and the "mistrust tax." Every time someone successfully perpetrates a scam, some protection gets put in place that increases friction and therefore price. Conversely, if you say "this was a one off. Let's not a create a rule yet" you can often create a "trust dividend" that saves way more money in the long term than the one scammer ever few years costs you

littleman

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Re: Amazon Dirty Scam
« Reply #3 on: August 15, 2019, 09:53:00 PM »
Ergophobe, for some reason this reminded me of going to the airport.  We're all potential shoe-bombers now.

ergophobe

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Re: Amazon Dirty Scam
« Reply #4 on: August 15, 2019, 11:21:30 PM »
>>airport

Once you start looking for it, you can't not see it.

Two examples.

I went up to the cash register at a show outlet in Wisconsin and gave them my credit card. She says, "We don't take credit cards, but we'll take a check." I told her I didn't have any checks. She said, "Well, I'll give you an envelope address to us and an invoice, when you get home, send us the check." I was astonished. She said "The credit cards charge us 3%. We have found that less that 1% of our customers are dishonest. But trusting our customers, we make an extra 2%"

So when we started our rental, we gave our guests unlimited long distance to anywhere. They can call Zimbabwe. People said we were stupid. We had to block foreign numbers and get an unlimited long distance plan for $50/month. I said I'd wait until it was a problem. In the 10 years we've been doing this, only one guest spent more than $5. She spent about $7 and she was so grateful for the service, she insisted on giving me a $20. Our typical bill is less than $1 per month and yet, for the people who need it, they are super grateful. So by trusting our customers, we have saved $6000 over ten years and pulled in at least three 5-star reviews in part because of the phone (the one woman had everything stolen in San Fran and was on hold with her insurance company in UK for 40 minutes and the consulate and was just tremendously grateful for how the unrestricted phone simplified her whole debacle).

One more... at the hotel, they wanted to provide board games to guests in a new high-end accommodation. Somebody says, "Well, people will take them. We need a checkout system." I respond, "We put three board games in our rental nine years ago and I just checked and now we have seven. People bought games they didn't want to put on the plane."

But keep your eyes open. Long contract that needs a lawyer to read it? That's a mistrust tax.
Security deposit? You get it back, but it's also a mistrust tax.

Over and over we pay because a couple people a couple of times did something bad that cost us $100, so now we have to spend $500/year protecting ourselves against it, because trust has been broken.