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Dr. Dean Edell reported today that there is a weight-loss clinic that charges $10,000. You get a full refund if you lose your desired weight. If not, the clinic keeps the money. I assume the clinic is confident that the failure rate is high enough to keep their business profitable. I would be uncomfortable using a service that needs a significant percentage of its clients to fail in order to stay in business.
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This is actually the business model for all those "Results Guaranteed or Your Money Back" deals...The sellers know all too well that 98% of people will fail to take the trouble to re-package the product and schlep it to the Post Office and return it for the "Cheerful Refund."
Posted by: Ed S. | June 07, 2008 at 04:13 PM
A successful business model based on apathy, laziness, and learned helplessness. Do I hear a cheer for the free market terrarium?
Posted by: Jeff McMahon | June 07, 2008 at 10:05 PM